Oil and gas companies often experience certain difficulties that may affect their ability to file for bankruptcy protection. Many of these difficulties center around the types of assets they have available under their agreement. In some cases, oil and gas leases may be able to be discharged through bankruptcy, because the lease was clearly not an obligation of the corporation. In other cases, the court may not consider a company’s lease as a type of contract that could bind it into bankruptcy. In both situations, an experienced attorney may be able to help the company negotiate options with its creditors or to discharge its lease from its obligations.
Several types of agreements exist under which a company can settle its debts and retain its rights to assets during the bankruptcy litigation process. One common type is a “recourse” agreement. This agreement provides that the company will only settle its debts for less than what is owed on the accounts. Another option is to settle the debts for a fraction of the value of the property held under the contracts. A creditor or collection agency can only collect what is owed under this type of agreement, so it is important for a debtor to make sure that all of its debts are fully paid before entering into one of these agreements. Visit here for more information about Arizona bankruptcy lawyer.
A “recourse” trustee is similar to a trustee, except that a debtor has no duty to pay the money to the trustee. A trustee must regularly report any income or assets changes to the court, so a debtor may choose to appoint a trustee who will regularly report the company’s activities to the court. If the company’s financial problems are due to an unusual circumstance, including unusual illness or loss of business, the court may also appoint an alternate trustee to act in the debtor’s best interests during the bankruptcy case.
The “other” party in a bankruptcy case can be another corporation, partnership or sole proprietor. These entities have the right to bring legal claims and litigation against the debtor. The damages sought by these other parties (other than those already described) are limited to actual damages only and must be brought against the responsible party. Damages brought by other parties must be brought within the period of time allowed by law. If the court does not allow the other party to sue, it has the power to dismiss the suit, so long as it shows that the debtor acted in bad faith and was aware of the other person’s rights.
Most disputes will be resolved with some type of negotiated agreement between the two sides. The court may enter into a temporary settlement or judgment while it considers the contested matters. Often, there are written agreements regarding various disputed matters. It is very common to find in bankruptcy cases, a combination of written agreements and arbitration. Sometimes, a bankruptcy court judge may issue an order directly controlling the settlement negotiations or the arbitration process.
As previously stated, there are many different types of filings that will be made at the court level during and after a bankruptcy case. When this occurs, there are two types of filings that must be made. These types of filings are the motions to dismiss and the affidavits and complaints. Both of these types of filings are considered part of the entire litigation process. In addition, most motions and complaints will also involve the scheduling of depositions. Once all of the preliminary and derogatory matters have been submitted to the bankruptcy court, the bankruptcy judge will make his final decision regarding the discharge of the debtor.