Protecting Unsecured Bankruptcy Claims
Unsecured creditors are dependent on unencumbered assets of an estate for payment. The priority for payment of these claims is generally as follows: first, costs of administration (including professional fees and expenses of operating the debtor’s business), followed by several claims that have high priority, and finally general unsecured pre-petition obligations. By virtue of their last-in-line position, general unsecured creditors might be viewed as having the most to lose should a chapter 11 debtor’s reorganization fail. It is for this reason that unsecured creditors may be most benefited by a thorough monitoring of the debtor’s affairs during the case. Our bankruptcy team is experienced in assisting unsecured creditors to protect their claims and maximize value received.