Creditor & Debtor Rights

At McCarthy Lebit, we bring an aggressive, but measured, approach to obtaining payments from debtors. Our creditors rights lawyers have extensive experience and undertake to maximize debt recovery on behalf of lenders and creditors through all phases of the collections process including bankruptcy proceedings, pre-bankruptcy workouts, receiverships, and negotiations concerning the use of cash and accounts receivable collateral.

Who We Are

Our attorneys have expertise in representing debtors, including but not limited to, owners and operators of commercial real estate, and other troubled business owners in the negotiation of workouts, forbearance agreements, loan modifications, discounted payoffs, and when necessary, initiate preemptive litigation or defend against litigation brought by a lender. While bankruptcy proceedings are usually reserved for challenging situations, if the need arises, we possess expertise in representing both debtors and creditors in connection to Chapter 11 and Chapter 7 bankruptcy proceedings. Our experience allows us to handle loan workouts and debt restructuring solutions, ensuring the protection and optimization of the interests of both debtors and creditors.

How We Help

In representing creditors, we take a proactive approach, focusing on thorough documentation so creditors can negotiate from positions of strength. We also provide collection services and represent clients in the negotiation of loan workouts, and we vigorously pursue remedies available to clients under their loan and security documents and as a matter of applicable law. We pursue judgments and enforcement measures through state or federal courts. We are experienced in representing creditors in commercial bankruptcy cases, seeking relief from the automatic stay, defending against preference recovery actions, and protecting the interest of secured lenders and lessors of commercial property. We also have experience representing receivers responsible for corporate liquidations and reorganizations.

When representing debtors we analyze their operation fully, thoroughly review loan and security documents in place with their respective lenders and advise distressed companies on the best course of action. Through proactive litigation and negotiations, we have assisted clients in successfully securing modifications, deferrals, and discounted payoffs of loans. These measures empower debtors to retain their properties under terms that bolster cash flow, facilitating a return to solvency. This, in turn, allows them to fully service their loans, operate their properties, and sustain their businesses. As needed, we pursue lender liability claims against financial institutions, securitized CMBS trusts, and other commercial lenders. We aim to level the playing field, seeking resolution in disputes to ultimately safeguard the property or business from foreclosure or liquidation.

With every case, we seek sensible and cost-effective solutions that will best serve our clients. This includes: