Texas Creditors’ Rights & Bankruptcy Attorneys

No matter which side of the debtor/creditor equation you find yourself on, Underwood Perkins is here for you. Our creditors’ rights and bankruptcy section is business-oriented and national in scope. We offer various services to help you solidify your rights as a creditor or plan through business insolvency.

It is never easy admitting that your business is insolvent. Fortunately, our attorneys offer solutions. We can assess your situation and see if you qualify for an asset sale, avoidance action, loan renegotiation, or restructuring. If you reach the bankruptcy stage, we offer experience with debtor-in-possession (DIP) lending, claims litigation, and outlining the duties of officers and directors during business insolvency.

Our services extend to creditors too. There may be initial panic when a debtor files for bankruptcy relief, but it is not hopeless. If the bankruptcy estate liquidates assets, you may receive a payment. We represent you through the process to ensure the court does not look over any priority status available to you.

There are solutions for unpaid debts, including garnishment, repossession, foreclosure, and attachment. Our attorneys also manage collection litigation and post-judgment enforcement. If you face challenges in debt collection, schedule a consultation and learn about your options.

Focus Areas:

  • Business Insolvency
  • Asset Sales
  • Collection Litigation & Post-Judgment Enforcement


First, know that you cannot continue the collection activity. Chapter 7 bankruptcy starts an automatic stay that stops all collections, including telephone calls, garnishments, and lawsuits. Unless your debt falls under an exception, you may have to wait and see if the bankruptcy trustee finds assets to liquidate. 

We review your options once you receive a bankruptcy notice and will attend the debtor’s 341(a) hearing. At the hearing, we learn about the debtor’s assets and if any possibility of a payout exists. If you have a secured loan with the debtor, we can file for relief from the stay and repossess the collateral. However, if you hold an unsecured loan, and the debtor has no assets for liquidation, you may never collect on the debt. 

Generally, a business is insolvent if your assets are less than two times the amount of your debt. Also, if your creditors start suing you or if you use credit to pay employees, it may be time to assess your business’ financial status.

If your business has assets to sell, that can eliminate your debt. We may look into other options before business bankruptcy. We may also look into avoidance actions or loan restructuring. These options work if your financial woes are short-term. 

However, if your long-term debt vastly outvalues your assets and you can no longer secure business credit, it may be time for more drastic action. A Chapter 11 bankruptcy allows you to restructure your business and find a plan for solvency while keeping creditors at bay. But if you need to close down completely, Chapter 7 is likely your best bet. Consulting with an Underwoods Perkins attorney will help you make an informed decision about the future of your business.

Business Creditor or Debtor--Underwood Perkins is here for you