Bernstein Law Firm Fall Advisory

Bernstein Law Firm Client Advisory

In this quarterly issue of Bernstein Law Firm's client advisory, our attorneys keep you current on a number of issues vital to the health of many businesses through our blog. The articles in this advisory focus on collateral assignment of an equity agreement, understanding claim objections and utility players in consumer bankruptcy. We encourage you to share these advisories with others who might benefit from the information.

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Kirk B. Burkley

Utility Players in Consumer Bankruptcy

In baseball, the utility player is the player on the team that can fill in at almost any position when needed. Having a good utility player on the team provides added depth to management and the ability to mix and match the roster to meet the challenges presented by any particular opponent. Similarly, the utility provider in a consumer bankruptcy needs to manage numerous sections of the bankruptcy code and applicable state law in order to effectively deal with the myriad of practical issues that arise in consumer cases. For the average utility, often governed by a maze of state regulations, it isn't easy as "shutting off the lights."

Maureen A. Dowd

Collateral Assignment of an Entity Interest: Economic v. Governance Rights

Maureen Dowd In these difficult economic times, debtors have become more creative in proposing additional or substitute sources of collateral to secure a debt or obtain a forebearance or loan modification. As real estate values have plummeted, alternatives have become more attractive, including an assignment of the debtor's interest in an operating entity with good cash flow.

Lara E. Shipkovitz

Understanding Claim Objections Under the Bankruptcy Code

Jennifer Tis Ordinarily, the first step a creditor will take upon learning of a debtor's bankruptcy case is to file a proof of claim to seek payment of money owed. A claim or interest that has been filed with the court will be allowed, and will serve as the basis for distribution of the creditors claim, unless a party in interest objects. Once filed, a proof of claim constitutes prima facie evidence of the validity and amount of the claim. Often times months or even years will go by before a creditor hears anything further about his claim from the debtor, trustee or any other party. Consequently, an objection to a claim may be brought long after the claim was filed.