It is common practice for lenders to require personal guaranties as part of the credit and collateral package when making a loan. Oftentimes, more than one guarantor is needed to “shore up” the creditworthiness of the credit applicant. Usually, multiple guarantors are not an issue except when one of the guarantors is a spouse of the applicant. More than ever, lenders need to exercise caution when seeking the guaranty from the spouse of an applicant. In 1974, Congress enacted the Equal Credit Opportunity Act (“ECOA”) in an effort to “eradicate credit discrimination waged against women, especially married women whom creditors traditionally refused to consider for individual credit.” Mays v. Buckeye Rural Elec. Coop., 277 F.3d 873, 876 (6th Cir. 2002). The ECOA’s implementing regulation is known as “Regulation B,” and it aims “‘to promote the availability of credit to all creditworthy applicants without regard to … sex [or] marital status [and other […]Continue Reading
Bankruptcy and Creditors' Rights
Thompson Burton's Bankruptcy and Creditors' Rights practice is full service, assisting clients in all manners of insolvency proceedings. Our attorneys specialize in bankruptcy, receiverships, commercial loan workouts, creditors' rights, Ponzi schemes, and complex commercial litigation, with the ability to represent parties on all sides of a dispute including creditors, debtors, receivers, and trustees.
As part of its creditors' rights practice, Thompson Burton routinely represents financial institutions, corporations, governmental entities, and individuals in complex workouts, bankruptcies, receiverships, state and federal court litigation and judgment enforcement. Our attorneys are recognized for their ingenuity, experience, and practicality in representing the interests of commercial creditors.
Thompson Burton's attorneys also have extensive experience in representing corporate debtors in Chapter 11 bankruptcies, chapter 7 bankruptcies, receiverships and outside of court debt restructuring. Thompson Burton has the tools to represent every kind of debtor, from a small, single member LLC to a large, publicly traded corporation to successfully and efficiently achieve their restructuring goals.
Some of Thompson Burton's attorneys are also frequently retained to represent court-appointed bankruptcy trustees and receivers in evaluating and pursuing litigation assets in state court, federal court, and bankruptcy court. Thompson Burton is recognized as one of the leading insolvency litigation law firms in the Mid-South region due to the breadth of its experience and its success in such litigation.
Thompson Burton's multi-faceted approach to its insolvency practice enables its attorneys to examine complex legal problems from all angles, and to craft legal strategies and solutions that are most effective and efficient for its clients.
In the Gospel of John, we read about the story of Jesus and Lazarus. Jesus and Lazarus were very close friends but Lazarus became sick and died. After being in the grave for four days, Jesus raised Lazarus from the grave. John 11: 1-44. It is a wonderful story of the love of two friends; of power and hope. Jesus’ actions were miraculous, and there was cause of great celebration since what was once dead was alive again. Unfortunately, there is no such miracle that can resurrect an expired judgment lien. Once a judgment lien has expired, it must be recreated. The life of judgment lien is tied directly to the life of the judgment itself. Without a judgment, a judgment lien does not exist. It is well-settled that a judgment lasts only ten (10) years from the date it was first issued. Judgments can be extended or renewed for […]Continue Reading
Modern day business can be complicated. Most business is conducted through corporate entities formed to provide a shield to the individuals “behind-the-scenes.” It is not uncommon to have more than one corporate entity created to shield the ultimate party. These corporate entities serve much the same way as the great curtain in “The Wizard of Oz”; they provide a “wall” or “veil” behind which the individuals can safely transact business while appearing to be much larger or greater than they would be without such protection. The difficulty arises when assets are hidden in the corporate structure thus resulting in a shield for an individual debtor against a creditor’s collection efforts. Jurisprudence has long recognized this potential problem, and case law exists to unwind this Gordian knot particularly when closely-held corporations are involved. These remedies are commonly known as “piercing the corporate veil.” To be successful, a creditor would need to prove […]Continue Reading
Oftentimes a judgment creditor seems to reach the limits of available collection remedies when an execution is returned as “unsatisfied.” In most creditors’ minds, such a return means that there simply aren’t any assets sufficient to apply towards the outstanding judgment. As a result, most will simply wait a period of time before trying again or give up. Like most states, Tennessee has a remedy that permits a creditor to “dig deeper” into a debtor’s assets and financial history. It is commonly called a “creditor’s bill to subject,” and it can be found at Tenn. Code Ann. § 26-4-101. A complaint for a creditor’s bill to subject is an equitable remedy that can only be granted by a court once it is established that a debtor’s property sought to satisfy the judgment cannot be reached by ordinary process, is insufficient or is not subject to levy and sale by execution at […]Continue Reading
You’ve reached the end of the actual litigation and received a judgment. Now what? The initial answer is simple: enforcement and collection! There are many steps to take on the path to converting the judgment to cash. Some of the prior articles on this blog illustrate the complexity of converting the judgment to cash, but one of THE most important steps to take is the creation of a judgment lien. This article provides some hints and recommendations on how to subject a judgment debtor’s assets to a judgment lien. The Tennessee Rules of Civil Procedure provide general insight into this process. Rule 69 sets forth the various ways to execute on a judgment. At first blush, these rules seem complete yet there are specific statutes that should also be considered to make sure the creditor is fully encumbering a debtor’s interests. The general belief among most creditors is that recording […]Continue Reading