Creditor Representation

Non-Judicial Foreclosures: We represent creditors in non-judicial foreclosure sales conducted in Harris County and Fort Bend County Texas. A non-judicial foreclosure is a legal process that permits a creditor to sell a parcel of real estate that secures repayment of a loan issued to a debtor that has defaulted on the payments. The process normally takes approximately 60 days to complete and results in either the lender purchasing back the property at the sale or a selling it to a successful third party bidder. A non-judicial foreclosure does not require the creditor to file a lawsuit.  It is the predominant method of conducing foreclosures in Texas.

Owner Financed Loans: We represent the holders of owner financed mortgage loans in Chapter 11 and Chapter 13 bankruptcy cases filed by debtors in an attempt to save the property from foreclosure and repay the debt though a bankruptcy plan.

Preference Claim Defense. We represent creditors in the defense of adversary lawsuits brought under § 547 of the Bankruptcy Code to avoid preferential payments. A preference is a payment of an antecedent debt made by a debtor to a creditor within 90 days before a bankruptcy case is filed. Section 547 of the Bankruptcy Code permits a debtor (or trustee of the bankruptcy estate) to sue the creditor that received the payment for a refund if the payment is legally considered a preference and none of the applicable defenses apply.

Lift Stay Motions. We represent creditors in proceedings to lift the automatic stay. The automatic stay prevents creditors from continuing to collect debts that arose before the debtor filed for bankruptcy. This includes a prohibition against: (1) the foreclosure or repossession of a debtor's property; (2) the continuation of litigation against the debtor; (3) the enforcement of a judgment; and (4) taking or keeping control over a debtor's property. To continue such collection activities, a creditor must file a motion in the bankruptcy case and ask the court to "lift the stay" – grant the creditor permission. The court will grant the motion if the court finds that "good cause" exists to lift the stay.

Automatic Stay Violation Defense. We assist creditors in defending against automatic stay violation claims. Section 362(k) of the Bankruptcy Code permits a debtor to sue a creditor that willfully violates the automatic stay. A creditor that violates the automatic stay can be ordered to pay actual damages, attorneys fees, and in appropriate circumstances, punitive (punishment) damages.

Chapter 11 and Chapter 13 Plan Objections. In Chapter 11 and Chapter 13 reorganization proceedings, debtors are required to file a plan of reorganization that determines how, when and how much of a creditor's claim will be repaid. We represent creditors in negotiating the repayment terms of creditor claims in bankruptcy cases, and prosecute objections to the confirmation of bankruptcy plans that treat the creditor unfairly.

Repeat Filers – Defense of Motions to Extend the Automatic Stay. We defend creditors in proceedings to extend the automatic stay. Section 362(c) of the Bankruptcy Code provides restrictions on debtors that attempt to file a second bankruptcy case after the failure of a prior bankruptcy case. One such restriction is the expiration of the automatic stay. The stay will expire within 30 days after a second bankruptcy case is filed if the debtor has been a party to another bankruptcy case that was dismissed within the past year.

To extend the stay in the second case, the debtor must file a motion with the court, and get the court to enter a written ruling that extends the stay, all within 30 days after the second case was filed. To prevail, the debtor must prove that there has been a substantial change in financial circumstances that clearly convinces the court that the second case will succeed.

In most cases, creditors do not oppose motions to extend the stay. In these cases, the court will almost always grant the motion and extend stay. In contested cases, the court will always take a much closer look at the evidence. In contested cases, there is usually only a 50% chance that the court will extend the stay. If the automatic stay is not extended, the creditor will then be free to collect the debt as if the bankruptcy case was never filed.

Discharge Contests. We represent creditor in contesting the discharge of a debt in bankruptcy under Bankruptcy Code § 727 due to fraud or other abusive debtor conduct.

Valuation Disputes. The treatment of secured creditor claims in bankruptcy often hinges on the value of the collateral. We represent creditors in valuation disputes relating to real estate, vehicles or other collateral.