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California Creditors' Rights & Restructuring Law

Worley Law, P.C. advocates for clients in bankruptcy proceedings, including under Chapters 7, 9, 11 and 13 of the Bankruptcy Code. The firm also handles creditor rights in assignments for the benefit of creditors ("ABCs"), receiverships and other insolvency proceedings. Attorney Kirsten Worley is experienced with respect to corporate, municipal and individual bankruptcies.

Kirsten Worley is co-chair of the Bankruptcy Subdivision of the American Bar Association's Tort Trial and Insurance Practice Section, Fidelity and Surety Law Committee. She is also an active member of the Orange County Bankruptcy Forum, the American Bankruptcy Institute, and the Orange County Bar Association Banking & Lending Section.

In addition to bankruptcy-related matters, Worley Law, P.C. handles both routine and sophisticated judgment collections issues for creditors. Because the firm's diverse understanding of corporate structuring and bankruptcy matters, it is adept at quickly locating assets for collection or determining that collection activities would not be economical.

Based in San Diego and Orange County, the firm handles cases for clients throughout California and nationally. The firm's legal staff works diligently to ensure that best interests of creditors are addressed and that optimal recovery or other desired results are obtained. Specifically, the firm can represent clients for the following matters:

  • Claim prosecution and litigation with respect to all claims, whether administrative priority, secured, unsecured priority or general unsecured
  • Negotiations for early workouts of all contested claims with debtors, trustees and other creditors
  • Relief from automatic stay (11 U.S.C. § 362)
  • Bankruptcy sales (11 U.S.C. § 363)
  • Lien rights, including the priority, extent and validity of competing liens
  • Actions seeking non-dischargeability of debt
  • Chapter 11 plan rights such as voting, cram down and confirmation, and post-confirmation issues
  • Risk-shifting arrangements and pre-planning when a party shows signs of insolvency, such as mechanisms to secure contract funds, secured transactions and third-party arrangements
  • Loss mitigation in bankruptcy
  • Post-petition financing agreements and related litigation
  • Protection of a general contractors' rights during an owner or subcontractor bankruptcy
  • Prosecution of rights of reclamation of a supplier to demand turnover of supplies previously furnished to a debtor in bankruptcy (11 U.S.C. § 546(c)), and prosecution of related administrative claim rights (11 U.S.C. § 503(b)(9))
  • Creditor representation in insurance code receiverships of a surety
  • Creditor representation in Federal Deposit Insurance Code (FDIC) receivership of a failed bank
  • Defense of parties from preference avoidance and other turnover actions
  • Prosecution of turnover claims directed to other parties
  • Prosecution of routine and advanced collections strategies, including writ of attachment and possession of assets, establishing court-appointed receivers, seeking charging orders, unwinding trusts and other debtor asset-protection strategies, litigating asset exemptions, writ of execution sales, taking debtor's examinations and attacking fraudulent transfers
  • Uniform Commercial Code (UCC) Article 9 secured party turnover rights and remedies, including UCC foreclosures, sales and turnover demands

A Targeted Approach For Creditors

Since a bankruptcy filing or other insolvency event typically indicates a debtor's shortage of money, it is likely that inadequate funds exist to repay all creditors during the claims liquidation and settlement process. Among other things, creditors may be paid only "pro rata," rather than in full, and creditor payments are prioritized according to various factors, such as through the "waterfall" of priority provided by the Bankruptcy Code. Generally speaking, secured creditors (including lien holders) typically share first in the proceeds of assets and do so on essentially a first-come (typically first in time), first-served basis. Administrative priority creditors also have a priority in the general assets of the debtor.

Thus, the goal with respect to bankruptcy and other insolvency proceedings, including judgment collections, is often to protect secured party lien rights and prosecute administrative priority, as well as to establish priority over other creditors and defend against turnover actions. Ultimately, the goal is to minimize the impact of the bankruptcy or insolvency event. By contrast, if chances of payment on a claim are slim, the firm will attempt to ascertain this as quickly as possible so that the client does not needlessly spend on fees and costs. In all cases, the firm's goal is to employ a target-based strategy with an aim toward an identifiable source for eventual collection.

Orange County creditors' rights attorney Kirsten Worley can navigate her clients through all matters associated with bankruptcy and insolvency matters. This includes handling disputes with competing creditors, litigation of lien rights and determining reasonable workout solutions. Ms. Worley's priority is to obtain and protect the best possible positioning for her clients. She is an accomplished courtroom litigator with a successful track record with creditors' rights cases, including multimillion-dollar claims and high-end litigation. In most cases, she will first attempt to settle the matter through mediation or early workouts. If an agreement cannot be reached amicably, she is willing to litigate to obtain an optimal result.

For a complimentary consultation to discuss your case, contact Worley Law, P.C..

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Worley Law, P.C.

San Diego Office:
1572 Second Avenue
San Diego, CA 92101
Phone: 619-550-1004
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Orange County Office:
26632 Towne Centre Drive, Suite 300
Foothill Ranch, CA 92610
Phone: 949-420-3706
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Worley Law, P.C. represents clients throughout Southern California including Orange County, Foothill Ranch, San Diego and Los Angeles. Select matters are handled by the firm for clients nationwide.