2222 W. Grand River Avenue, Okemos, Michigan 48864

Creditors’ Rights

Klug Law Firm has been protecting the interests of businesses and creditors since 1977.  Clients continue to retain Klug Law Firm to compel debtors to actually pay their debt, surrender collateral, and fulfill their contractual obligations.  We have helped a broad base of business clients achieve results out of court through negotiation and dispute resolution.  When litigation is necessary, we make sure that our client’s interests are fully protected.  Our firm serves a diverse range of businesses, banks, lenders, distributors, and other credit-extending entities in Michigan.

Creditors’ Rights

When a borrower files for bankruptcy relief, it is important for creditors to fully understand its legal rights.  Once a debtor’s bankruptcy is discharged by the Bankruptcy Court, a creditor’s unsecured debt is discharged forever.  We ensure that our clients’ secured interest is adequately protected in Chapter 7 liquidations, and Chapter 11 and 13 reorganizations.  We provide our clients with a wide range of bankruptcy relief such as relief from automatic stay, non-dischargeability of debt, lien retention, assert priority status over other creditors, adequate protection, and Chapter 11 or 13 plan confirmation.  When necessary, our experienced attorneys will file adversary proceedings against debtors, when our client’s secured assets have been embezzled, converted, and transferred to ensure that our client’s debt is non-dischargeable.

Claim and Delivery

It is frustrating when debtors default on payments and cease any and all communications with creditors.  Klug Law Firm represents banks and business clients throughout Michigan in claim and delivery actions to recover possession of goods which have been unlawfully taken or detained, and to recover any damages sustained.  Our attorneys have extensive experience in the recovery of collateral on behalf of banks, lenders, and businesses throughout Michigan.  We understand the importance of preserving collateral, whether it be the representation of financial institutions in recovering collateral from commercial and consumer loans, or recovering collateral (including: merchandise, inventory, equipment, machinery, and personal property) for businesses who deliver the collateral on the extension of credit.  We are experienced in providing fast and satisfactory results for secured creditors.  When litigation is the only option, we will ensure that our client’s assets are adequately protected and the debtor is held accountable for his actions.  At the front end of our lawsuits, we will file a motion ordering the debtor to appear before the Judge within twenty-one (21) days of the filing of the lawsuit.  Once this happens, the debtor will have to ensure the Court that our client’s assets are protected, or otherwise, the assets will be seized and turned over to our client pursuant to the Court’s Order.  At this point the debtor can no longer hide from our client, and this action usually results in a negotiated a settlement, or otherwise the assets are turned over to our client.  In addition, Klug Law Firm audits its clients’ collection practices and recommends and implements changes to their credit application, security documents, invoicing and/or delivery and collection practices to allow its clients the opportunity to secure and recover their collateral in claim and delivery actions.  This is one of many ways our firm has been obtaining quick and satisfactory results for our clients.

Appointment of Receiver

The appointment of a receiver over a debtor’s property can be a necessary remedy for a creditor both pre and post judgment.  In Michigan, Courts have the authority to appoint a receiver over a debtor’s property to protect the rights of creditors.  The appointment of a receiver allows a receiver to operate and manage the debtor’s ongoing business if it is deemed feasible and necessary while preserving the interests of the secured creditors.  Our attorneys have experience in protecting secured creditors rights and having receivers appointed over a debtor’s property prejudgment.  Situations when the appointment of a receiver prejudgment is a necessary remedy when the: (1) business should remain open to protect the interests of the secured creditors; (2) secured assets are easily disposable; (3) secured assets are easily transferable; (4) value of the secured assets can be easily diminished; (5) secured assets can be easily sold and converted to cash; and/or (6) debtor has improperly used cash proceeds.  The appointment of a receiver post judgment is necessary to bring about compliance with a Court’s Orders.  This can arise when a debtor: (1) continues to hide assets; (2) fails to answer post judgment discovery requests; or (3) fails to comply with post judgment relief.  When necessary our attorneys will move the Court to appoint a receiver to protect our clients’ assets and do everything possible for our clients to recover on the debt owed to them.  Klug Law Firm represents banks, businesses and individuals in state receivership actions involving mortgages, liens, secured creditors, judgments and other matters implicating a security interest in property.

Debt Collections

When a debt is owed, a creditor must obtain a judgment in order to collect from the debtor.  We will do everything we can to obtain a quick judgment.  Once a judgment is entered, and the judgment has not been satisfied, we will then proceed with necessary post-judgment collection activities.  Garnishment of bank accounts, wages, seizure of assets (vehicles, and interest in businesses), appointment of receivership, or a debtor’s exam are some of the various post-judgment collection activities we will pursue to make sure that our clients recover as much as they can from the debtor.

Workouts and Foreclosures

When a borrower defaults, banks and lenders have many options.  The attorneys at Klug Law Firm will explore the options for financial institutions to recover money or mitigate losses from commercial and consumer loans.  Whether it is negotiating a settlement, or pursuing collateral and/or seeking a deficiency balance, we make sure our clients are well informed in regards to every legal right it has to pursue.  Our attorneys have extensive experience with lien foreclosures, repossession, and collection, but we commonly engage in amicable resolutions with debtors such as workouts and other non-litigated or negotiated solutions.

In Lansing and central Michigan, contact the Klug Law Firm for quality, professional assistance in areas of creditor’s rights.

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