Commercial Law World - Issue 4, 2017 - 11

WANDA BORGES

which bankruptcy practitioners don't want to handle,
don't have the time to handle, or don't have the expertise
to handle.
While all the bankruptcy practitioners are busy
networking to get the next creditors' committee case
or local counsel assignment, commercial litigators and
collection attorneys need to get out there and grab some
of the liquidation work.

The Type of Work Which May be Available.
Collection of accounts' receivable: The job of a
Liquidating Trustee includes collecting all of the
accounts' receivable owed to a bankrupt company.
Most Liquidating Trustees are bankruptcy practitioners
and do not know the best and most practical way in
which to collect accounts' receivable. Commercial Law
League attorneys and agencies are experts at collecting
debts. It is common knowledge that once there is a
bankruptcy filing, the value of those accounts' receivable
will diminish. Every excuse known to man will be used
in order not to pay the just amount that is due. CLLA
agencies and attorneys are used to hearing those excuses
and are best able to dismiss those excuses in order
to achieve a reasonable payment. Furthermore, most
Liquidating Trustees only understand the concept of
hourly work.

The CLLA attorney or agency
has the benefit of knowing
how best to work on a
contingency basis.
Thus, it costs nothing to the Liquidating Trustee if
no recovery is made. If recovery is had then the
Liquidating Trustee and the attorney or agency makes
its respective fee.
Enforcement of Judgments: A common practice of
Liquidating Trustees is to commence a lawsuit in the
original bankruptcy court. Frequently, defendants
default. Now, the Liquidating Trustee is left with a
myriad of judgments with no knowledge on how to
enforce those judgments or ability to do so in the various
states where the defendants may actually be located.

CLLA collection attorneys have
the expertise to domesticate
those federal judgments in the
respective states and then
proceed to enforce those
judgments against the defendants'
assets within those states.
Recently, I was approached by a Creditor Trustee
in an Arizona bankruptcy proceeding to enforce
judgments against nineteen defendants who might
have assets located in New York. The Creditor Trustee
wants these handled on an hourly basis, which we are
prepared to do. The steps necessary to docket the federal
court judgment and then issue restraints and perhaps
executions based on those federal court judgments
are commonly known to our office and to collection
attorneys nationwide in their respective home states.
Serving as Liquidating Trustee: Many of my colleagues
in the commercial litigation/collection world work for or
own small to mid-size law firms. The small to mid-size
law firms cannot often compete with the large firms who
will be retained as counsel to creditors' committees in
chapter 11 proceedings. That does not mean, however,
that some piece of the pie should not come to these
small to mid-size firms. In a recent case, we represented
the second largest creditor in a chapter 11 proceeding
but we did not represent the creditors' committee
which had been formed prior to the bankruptcy filing.
Although our client would have supported our firm
in a challenge to replace the existing law firm, and
in fact asked us to do so, it was not necessarily in the
best interest of the client for us to do that. Rather
than challenge the existing committee counsel, we
discussed the case with that firm, advised them of our
client's interest in having us involved with the case and
suggested that there might be a place for our firm during
the chapter 11 proceeding. As it happened, the case
became a liquidating chapter 11 and this author is now
the Liquidating Trustee of that confirmed chapter 11
case.
The moral of these stories is that there is work out
there, it is up to the commercial litigator, collection
agency, and collection law firm to make oneself
known to the bankruptcy community and get some
of that work.
CLLA.ORG

11


http://www.CLLA.ORG

Table of Contents for the Digital Edition of Commercial Law World - Issue 4, 2017

Contents
Commercial Law World - Issue 4, 2017 - Cover1
Commercial Law World - Issue 4, 2017 - Cover2
Commercial Law World - Issue 4, 2017 - Contents
Commercial Law World - Issue 4, 2017 - 2
Commercial Law World - Issue 4, 2017 - 3
Commercial Law World - Issue 4, 2017 - 4
Commercial Law World - Issue 4, 2017 - 5
Commercial Law World - Issue 4, 2017 - 6
Commercial Law World - Issue 4, 2017 - 7
Commercial Law World - Issue 4, 2017 - 8
Commercial Law World - Issue 4, 2017 - 9
Commercial Law World - Issue 4, 2017 - 10
Commercial Law World - Issue 4, 2017 - 11
Commercial Law World - Issue 4, 2017 - 12
Commercial Law World - Issue 4, 2017 - 13
Commercial Law World - Issue 4, 2017 - 14
Commercial Law World - Issue 4, 2017 - 15
Commercial Law World - Issue 4, 2017 - 16
Commercial Law World - Issue 4, 2017 - 17
Commercial Law World - Issue 4, 2017 - 18
Commercial Law World - Issue 4, 2017 - 19
Commercial Law World - Issue 4, 2017 - 20
Commercial Law World - Issue 4, 2017 - 21
Commercial Law World - Issue 4, 2017 - 22
Commercial Law World - Issue 4, 2017 - 23
Commercial Law World - Issue 4, 2017 - 24
Commercial Law World - Issue 4, 2017 - 25
Commercial Law World - Issue 4, 2017 - 26
Commercial Law World - Issue 4, 2017 - 27
Commercial Law World - Issue 4, 2017 - 28
Commercial Law World - Issue 4, 2017 - Cover3
Commercial Law World - Issue 4, 2017 - Cover4
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