Posted on November 14, 2024 in Bankruptcy

Businesses and individuals with significant financial difficulties may file for Chapter 11 bankruptcy protection. A creditor faced with a debtor company that has filed for Chapter 11 bankruptcy should consider consulting with an attorney who represents creditors to ensure that they are able to recover their assets and to familiarize themselves with the process.

Chapter 11 Bankruptcy Explained

Chapter 11 bankruptcy allows a debtor to reorganize with no debt limits. For this reason, and because the business owner remains in control of operations even following bankruptcy, many businesses utilize Chapter 11.

However, Chapter 11 reorganization is complex and unpredictable, especially for creditors, who must ensure that they monitor debtor filings so that their claims are not negatively impacted. Unsecured creditors, who are paid last following reorganization, should be particularly vigilant to ensure their rights are not negatively impacted.

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 Posted on October 14, 2024 in Commercial Litigation

An important part of running a business is forging strong relationships with employees, suppliers, vendors, and partners. However, when businesses get competitive, they can sometimes interfere with those relationships. When a person or company inappropriately disrupts someone else’s business relationship with a third party it is called tortious interference. If that interference causes financial harm, the affected business may bring a legal claim against the interferer, referred to as the defendant.

There are two types of tortious interference: 

• Tortious interference with prospective economic advantage
• Tortious interference with contract

In this article, we will explore what tortious interference with contract is, how to prove it, and how to protect your business against such a threat. Consult an Illinois commercial litigation attorney for more details or to file a claim for tortious interference.

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 Posted on September 13, 2024 in Commercial Litigation

Commercial debt collection is a necessary task for many businesses. Companies often conduct transactions on credit terms, providing goods or services for payment at a later date. When that date comes, the creditor is entitled to collect the money it is owed. However, debt collection can be a challenging process and can backfire on the creditor if it fails to take certain steps. Mistakes made while trying to collect commercial debt may result in lost revenue and can damage business relationships. The best way to avoid such pitfalls is to consult an Illinois commercial debt collection attorney who can guide the process.

In this article, we will discuss five mistakes commercial creditors make when collecting debt.

Maintaining Poor Documentation

A common error made by companies who try to recover commercial debts is keeping inadequate documentation. Record-keeping is an essential part of the debt collection process and can be the determining factor in its success. Creditors should keep records of every phone call, email, and communication attempt, in addition to invoices. Failure to do so may sabotage the creditor’s chances of winning a legal dispute down the line.

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 Posted on August 15, 2024 in Commercial Litigation

Commercial lease violations can be a significant headache for both landlords and tenants. Whether you are dealing with missed rent payments, unauthorized property alterations, or breaches of use restrictions, knowing how to handle these situations is crucial. An Illinois lawyer can walk you through the essential steps to address commercial lease violations effectively and protect your interests. To achieve the best potential outcome, it is beneficial to never try to navigate this type of case by yourself.

Common Commercial Lease Violations

Before getting into the resolution process, it is helpful to recognize some frequent lease violations:

• Non-payment or late payment of rent
• Unauthorized subletting or assignment
• Improper use of the premises
• Failure to maintain the property
• Violating occupancy limits
• Breaching exclusivity clauses

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 Posted on July 19, 2024 in Commercial Litigation

Commercial litigation can challenge any business, potentially impacting operations, finances, and reputation. Getting through these legal waters requires strategic preparation and decisive action to protect your company's interests. An Illinois lawyer can help you with the critical steps to protect your business during commercial disputes.

Keep Track of All Relevant Documents and Communications

One of the most critical steps in protecting your company during litigation is to implement a comprehensive document preservation strategy:

• Issue a litigation hold: Immediately notify all relevant employees to preserve any documents, emails, or other communications related to the dispute.
• Suspend routine document destruction: Temporarily halt any automatic deletion or destruction of records that may be pertinent to the case.

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 Posted on June 19, 2024 in Uncategorized

Wage garnishment is a legal process that allows creditors to collect debts by requiring a company to withhold a portion of an employee’s earnings. While wage garnishment can be effective, you must understand the legal requirements and limitations surrounding this process. An Illinois lawyer can help you with the circumstances under which wage garnishment is permitted and the steps creditors must take to initiate the process.

Obtaining a Court Judgment

In most cases, a creditor must obtain a court judgment against a debtor before pursuing wage garnishment. This judgment is a formal court order that states the debtor owes a specific amount of money to the creditor. Exceptions to this requirement include certain debts, such as unpaid taxes, student loans, and child support.

To obtain a court judgment, the creditor must file a lawsuit against the debtor and prove the existence and amount of the debt. If the court rules in favor of the creditor, it will issue a judgment that can be used to initiate wage garnishment.

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 Posted on May 15, 2024 in Bankruptcy

Facing financial difficulties and considering insolvency can be an overwhelming experience. It is important to understand your situation and options so you can take the right steps to protect yourself legally. Financial troubles can sometimes lead to legal issues, so being proactive and informed is important. An Illinois lawyer can help you approach this situation wisely.

First, Understand Your Your Financial Situation

The first step is to get a clear picture of your finances. Gather all relevant financial documents, including bank statements, credit card bills, tax returns, and loan agreements. Make a list of your assets, debts, income, and expenses. This will help you determine the severity of your financial situation and explore potential solutions.

Insolvency means that you are unable to pay your debts as they come due. If you have more liabilities than assets or not enough cash flow to cover living expenses and debt payments, you may be insolvent. Common causes include job loss, medical bills, business failure, or overwhelming debt.

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 Posted on April 16, 2024 in Commercial Litigation

With just about everyone using the internet and various ways people and other business entities can use your graphics and other content, you must consider protecting your intellectual property (IP rights). An Illinois lawyer can help you to enforce these rights.

Be Sure You Understand Your IP Rights

Before you can enforce your IP rights, it is crucial to have a clear understanding of what they entail. In Illinois, patents protect inventions, trademarks defend brands and logos, and copyrights secure original works of authorship. Familiarize yourself with the specific laws and regulations surrounding each type of IP protection to ensure you are well equipped to defend your rights.

Register Your IP

One of the most important steps in enforcing your IP rights is to register them properly. In Illinois, you can register your trademarks and copyrights with the United States Patent and Trademark Office (USPTO) and the United States Copyright Office, respectively. Patent registration is managed at the federal level, and it is crucial to collaborate with an attorney to steer through the intricate application process.

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 Posted on March 12, 2024 in Commercial Litigation

As a business owner or executive, you may encounter contract disputes at some point. These disagreements can be stressful and potentially damaging to your company if handled improperly. An Illinois lawyer can discuss effective strategies for resolving business contract disputes in accordance with Illinois law, helping you protect your interests and maintain productive professional relationships.

Understand Your Contract

Before taking any action, thoroughly review the contract in question. Pay close attention to the following:

• Terms and conditions.
• Performance obligations.
• Deadlines and milestones.
• Dispute resolution clauses.

Understanding your contract is crucial because it forms the legal foundation of your agreement. It outlines what is expected from all parties involved and provides a roadmap for how to proceed with your business relationship. Paying close attention to the terms and conditions, performance obligations, deadlines, milestones, and dispute resolution clauses can ensure you are well informed about your responsibilities and rights.

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 Posted on February 14, 2024 in Bankruptcy

In the realm of commercial debt collection, post-judgment enforcement plays a vital role in ensuring the satisfaction of outstanding debts. When Illinois debtors fail to fulfill their obligations, creditors can use various enforcement methods to recover what is owed. When approaching this kind of situation, there are three potentially effective enforcement tools: wage garnishments, levies, and liens. Understanding these methods is crucial for creditors seeking to enforce their rights and collect outstanding debts. Contact a lawyer to get started on this process today.

Wage Garnishments in Post-Judgment Enforcement

Wage garnishment is a legal process that allows a creditor to collect a debt directly from a debtor’s wages in the context of post-judgment enforcement in commercial debt collection:

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