LAW LEADERS LABAN OFFICIAL PRESS RELEASE
Creditors Continue to Mistake RegulatoryReceivership Cases for Bankruptcy CasesPRESS RELEASE - DEC 15, 2015 08:56 PST
Recent article by Southern California law firm, McNamara Benjamin LLP, discusses howfailing to understand the difference in how regulatory receivership cases and bankruptcycases are handled can be costly.McNamara Benjamin LLP is one of the few firms inSouthern California that handles federal receivershipcases. In a recent article they discuss how creditorsoften confuse the way regulatory receivership casesare handled in comparison to bankruptcy cases. Withan increased frequency in regulatory receivership casesin the last few decades, and a lack of familiarity onbehalf of creditors, the firm states that creditors oftenmake costly presumptions. Regulatory receiverships are imposed by courts at therequest of enforcement agencies such as the Securitiesand Exchange Commission, the Federal TradeCommission, the Consumer Financial Protection Bureau, the Commodity Futures TradingCommission, and their state counterparts.The firm discusses that while many parallels can be drawn between bankruptcy andregulatory receivership cases, failure to understand the differences can lead to costlycomplications. In order to create clarity and understanding, they outline a few of the followingsignificant differences:
Receiverships are still largely governed by equity, with few statutes and rules. The receivership order is critical and its rarely the same twice. There may not be a formal notice or claims process. Fraudulent transfer law is narrower than in bankruptcy, but there are also exceptions. A Regulatory Receiver may have the ability to avoid certain defenses that would preventrecovery by a bankruptcy trustee.
The lawyers of McNamara Benjamin LLP have served as receivers and counsel for receivers inwell over twenty regulatory receiverships involving hundred of millions of dollars in claims
In our experience working onregulatory receiverships, the mostcommon mistake creditors make isto assume that a regulatoryreceivership will be handled thesame way as a bankruptcy. Whilethere are significant parallelsbetween a bankruptcy and aregulatory receivership, failure tounderstand the differences can becostly.
MCNAMARA BENJAMIN LLP
Categories:Finance, Business Finance, Commercial Law
Tags:bankruptcy, creditors, FTC, Receivers,Receivership, Regulatory Receivership, SEC
and assets. Their lawyers have also represented secured and unsecured creditors innumerous other receiverships. Each receivership is unique, and their experience allows themto navigate the complex and uncertain circumstances that arise. The complete article can be found here. To learn more about regulatory receiverships or toschedule an interview with a McNamara Benjamin LLP attorney, contact us here.
Company Contact InformationDebra BakerLaw Leaders Lab200 4275 Executive Square, San DiegoCA, 920371-844-4LAWLAB
Original Source: www.newswire.com
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