Legal Question in Bankruptcy in California

My rights as a creditor

My husband and I sold our businesses in 1995 to his sister and brother-in-law. We turned over two very successful businesses and filed a signed promissary note and a UCC filing. There was a total of 80,000 of paid inventory and about 50,000 in furniture and fixtures. They have filed bankruptcy and listed us as a creditor. I know that they owe the IRS and their suppliers also. I don't want to have to hire a lawyer and waste more money but they still owe us over $400,000 for the businesses. We received a notice that there may be some assets and we really don't know how to proceed.


Asked on 5/26/01, 1:46 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: My rights as a creditor

I don't see a question here, but you should definitely consult with an attorney in the locale where the BK was filed. You don't say what chapter was filed or give any other relevant information, so I cannot offer much more advice at this time.

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Answered on 6/26/01, 12:00 pm
Norman Gregory Fernandez, Esq. The Law Offices of Norman Gregory Fernandez & Associates

Re: My rights as a creditor

My only advice to you is to hire counsel to represent you in Bankruptcy Court. It would be very difficult for you to do what is required of you in pro per. You are what is considered a secured creditory (your loan is secured by the goods of the business) You would take priority over all non-secured creditors. Unless you file your claim with the Court, you can jeapordize your rights. The amount that is owed to you justifies you hiring an attorney!!

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Answered on 6/26/01, 12:02 pm


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