Bankruptcy Services for Creditors
The Receivable Management Services Corporation (RMS) provides for the proper filing of claims to maximize the recovery of debts from companies in bankruptcy, negotiates resolution of objection to claims, identifies and pursues opportunities for “special recoveries” (such as reclamation, critical vendor and executory contract) defends against preference demands and other services related to creditors suffering from bankruptcy situations among their customers. This specialized area of legal services requires detailed knowledge and experience on issues such correct and timely filing of legal documents, negotiations and representations on creditor committees, and the correct response to bankruptcy related legal demands. All of these are provided for you by our nationally recognized staff of attorneys, paralegals and support personnel who can, and do, provide you the benefit of the only creditor services program of its type in the United States.
What We Do
RMS has experienced and specially trained associates who will handle this wide range of bankruptcy related issues at a much lower cost than hourly rates charged by traditional providers. Bankruptcy Services include the opportunity to move your collections through a logical, effective progression of payment requests and when necessary, directly onto bankruptcy servicing.
Proof of Claim (POC) Filing Services - RMS will timely and accurately file your proof of claim (POC) forms, review incoming correspondence and all your incoming documents from the court for the life of the bankruptcy. We advise on key issues such as claim objections, sale of assets, disputes, or votes on reorganization plans. We analyze and negotiate resolution of objections to your claim when they arise from the debtor; and look for opportunities to enhance your recoveries.
Preference Defense Analysis & Negotiation/Resolution
As a separate effort, we can address preference repayment demand. Those arise when you receive payment from a debtor in the 90 days prior to the bankruptcy filing and a letter or lawsuit is forthcoming from the Trustee, debtor’s counsel or other appointed party demanding that the supplier return these ‘preferential payments’. RMS knows the valid defense that can extinguish or reduce there preferred demands. Since our efforts on your behalf in this area too are contingent, we only receive a fee when you save money. If you don’t agree that the negotiated resolution to the preference demand that we can achieve on your behalf is satisfactory, you can always retrieve the preference from our services and use an alternative service provider to address your issues.Back to Top
- Reclamation Handling – RMS helps creditors that sell goods to a debtor, to file for the recovery of those goods should they have been delivered within a few days prior to the bankruptcy, or at times, up to 20 days thereafter. If you have just shipped goods to a debtor shortly prior to the bankruptcy filing, acting quickly is critical to generating optimum recoveries.
- Critical Vendor Payments – These are situations in a Chapter 11 filing wherein a debtor determines that the goods or services provided by the creditor are essential to the successful re-organization effort. While a creditor cannot force a debtor to include them in the critical vendor, awareness of the opportunity and knowledge of how to address it does at times provide the opportunity to enhance your recovery—often to 100%.
- Executory Contract – In many situations, wherein the creditor provides goods or services to a debtor under contract, the contract can be assumed or rejected by the debtor, and when assumed can provide for enhanced or complete recovery of the pre-petition amounts due from the debtor. Here the creditor can at times force the debtor to assume the contract.
- Creditor Committee Participation – For larger claims (usually over $100,000), RMS seeks appointment to the Official Committee of Unsecured Creditors. Participation in this committee provides one of the best opportunities to improve the recovery of Chapter 11 cases. We can often impact the structure of the re-organization plan to result in an outcome more consistent with the goals of our customers.