Creditors & Collections – Protecting your Investment

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Creditors & Collections – Protecting your Investment

When investing, it’s best to plan for the worst & hope for the best. If the investment goes south, a creditor who enjoys “priority” stands in a better position to recoup their investment. You can better position yourself with:

  • Mortgage – or lien on real estate
  • Attachment – court ordered lien on realty, bank deposits, receivables, or other assets
  • Trustee process – court ordered lien on bank accounts or monies due to a debtor
  • Equitable subordination – in certain circumstances, out of a sense of fairness, a court will permit one creditor to “leapfrog” ahead of another
  • Bankruptcy – a trustee will work to retrieve assets for you and other creditors
  • Mechanics’ lien – a lien on property to which you supplied labor or materials

Consult early with counsel about these & other remedies if you are concerned about protecting your rights to funds due to you.

2017-08-29T11:02:47-05:00Categories: Business Law, Financial Matters|