Creditors’ Rights

Creditor Collection Remedies.

Anastasi Jellum protects the rights of banks, businesses, contractors and developers by executing appropriate remedies available to creditors in the legal process.

We protect the interest of our creditors and recover assets by implementing the most appropriate methods of recovery. There are times when bankruptcy becomes a major component of a loan workout structure or other recovery effort, and we are seasoned professionals in addressing creditor bankruptcy issues in all areas.

  • Conducting discovery and depositions to identify non-exempt assets
  • Directing wage and non-earnings garnishments
  • Coordinating Sheriff’s executions upon non-exempt assets
  • Facilitating settlement agreements for structured or lump sum payments

Loan Workout and Collection.

Anastasi Jellum assists our banking clients in working out troubled loans in an effort to maximize their recovery and avoid litigation when possible. Our initial efforts typically involve opening substantive dialog with the borrower in an attempt to structure a repayment plan that is both realistic for the borrower and satisfactory to the bank. We have successfully utilized the following workout agreements:

  • Forbearance agreements
  • Voluntary relinquishment agreement
  • Confessions of judgment
  • Deed in lieu agreements
  • Voluntary liquidation agreements
  • Voluntary receivership agreements
  • Other structured arrangements to maximize recovery of troubled loans

Creditor Bankruptcy Rights.

There are times when bankruptcy becomes a major component of the loan workout structure. We are no strangers when it comes to addressing the following types of Creditor bankruptcy issues:

  • Obtaining relief from the automatic stay
  • Dealing with preferential transfer matters
  • Fraudulent conveyances
  • Cash collateral agreements
  • Reaffirmation agreements
  • Getting property out of the bankruptcy estate

The full range of services Anastasi Jellum provides on behalf of creditors includes:

  • Agreements
    • Structured settlements
    • Lump sum payments
    • Forbearance agreements
    • Voluntary foreclosure agreements
    • Deed-in-lieu agreements
  • Asset valuations
  • Attachment proceedings
    • Coordinating Sheriff’s executions upon non-exempt assets
    • Garnishments – directing wage and non-earnings garnishments
    • Replevin
    • Repossession
  • Bankruptcy
    • Involuntary bankruptcy petitions
    • Chapter 11 bankruptcy creditor representation
    • Court appointed receiverships
    • Creditor discharge litigation
    • Fraudulent conveyances
    • Getting property out of the bankruptcy estate
    • Obtaining relief from the automatic stay
    • Preferential transfer matters
    • Reaffirmation agreements
  • Collections
    • Commercial loans
    • Equipment loans
    • Home equity loans
    • Construction loans
    • Garnishment
    • Levies
    • Liquidations
    • Loan workouts
    • Mortgages
    • Condominium association assessment and judgment collection
    • Post judgment collections
  • Discovery – conducting discovery and depositions to identify non-exempt assets
  • Fair Credit Reporting Act (FCRA) compliance and defense
  • Fair Debt Collection Practice Act (FDCPA) compliance and defense
  • Judgments
  • Landlord/Tenant Law
    • Commercial leases
    • Residential leases
    • Landlord/tenant disputes
    • Unlawful detainer actions
    • Tenant Evictions
  • Liens
  • Real Estate Foreclosure
  • Restraining orders
  • SBA, USDA Government Guaranteed Loans
  • Workouts

Creditors’ Rights

Loan Defaults.

Anastasi commenced litigation on behalf of a Minnesota community bank against an LLC and several personal guarantors (“guarantors”) upon default of a $1.5 million loan. The guarantors counterclaimed for various claims, including fraud in the inducement and failure of conditions precedent. The guarantors also asserted third party claims against the originating bank and the loan officer. After cross-motions for Summary Judgment were denied on the basis of disputed facts, the respective claims were tried to a jury, resulting in a verdict dismissing the guarantors’ claims and defenses and awarded the bank judgment for the amount due on its loan. The Minnesota Court of Appeals affirmed the jury verdict and concluded that the bank’s motion for Summary Judgment should have been granted, as a matter of law. The guarantors’ petition for review by the Minnesota Supreme Court was denied. Minnesota Court of Appeals File Nos. A11–1202, A11–1229.

Anastasi commenced litigation on behalf of a Minnesota community bank against an individual and entities he owned/controlled (collectively, “defendant”), on several loans totaling in excess of $5 million. The bank foreclosed on its mortgages by advertisement and, in separate actions, pursued the appointment of a receiver and entry of a deficiency judgment against defendant. Defendant counterclaimed, asserting that an oral agreement with a former bank vice president, which was corroborated by the former vice president, allowed defendant to utilize funds in a collateral account held by the bank to cure events of default on the loans. The bank moved for Summary Judgment and the court concluded that the terms of the loan documents and Minnesota Statutes § 513.33 barred the alleged oral agreement/modification of the loan documents and the Court entered judgment for the bank for the deficiency. Minnesota Court of Appeals File No. A10-824.

Breach of Contract.

An individual and two entities (collectively “plaintiffs”) commenced litigation against a Minnesota bank, a holding company and a third party, asserting a claim for damages in the amount of $20,000,000. Plaintiff was a former borrower who had entered into and breached a forbearance agreement with the bank. The bank asserted its rights and was paid in full. Subsequently, plaintiff sued the bank and the holding company. The bank asserted its defenses under the forbearance agreement and brought a motion for Summary Judgment against plaintiff, seeking an award of the bank’s attorneys’ fees. The Court granted the bank’s motion and awarded the bank $16,707.40, in attorneys’ fees and costs, which our office subsequently collected through a garnishment. Plaintiff subsequently appealed and the Minnesota Court of Appeals affirmed the District Court’s decision. The bank was further awarded its attorneys’ fees in the amount of $17,841.50, by the Minnesota Court of Appeals. Minnesota Court of Appeals File Nos. A08-0463, A08-0700.

Anastasi represented a community bank in litigation against defendants alleging breach of guaranty agreement, and to set aside fraudulent conveyances. Defendants counterclaimed, alleging tortious interference with contract, and other claims. The bank was granted summary judgment for $2.8 million, and dismissed all counterclaims. A significant amount was collected by settlement of the fraudulent transfer claims.

Foreclosure.

Subsequent to a mortgage foreclosure, plaintiffs brought an action in Federal Court to void the pending eviction, the foreclosure, and the bank’s mortgage, as well as for damages of $500,000. The bank denied the claims and moved to dismiss the Complaint. Plaintiffs subsequently agreed to dismiss any and all claims against the bank, with prejudice, with no payment or other consideration provided to plaintiffs by the bank.

Plaintiffs sued a Minnesota bank alleging that the bank breached the terms of a forbearance agreement entered into with plaintiffs. The bank counterclaimed for foreclosure of a number of mortgages and for a deficiency judgment against the guarantor. The matter was tried to a jury in Ramsey County and, subsequent to plaintiffs’ resting, the bank moved for and was granted a directed verdict by the Court, dismissing the plaintiffs’ claims and granting the bank judgment on its counterclaims.

Plaintiffs sued a federal lending institution alleging that the lender breached the terms of a forbearance agreement and its amendments entered into with plaintiffs. Plaintiffs sought the release of collateral and forgiveness of over $3,000,000, remaining owed to the lender. Lender counterclaimed for confirmation of its foreclosure upon its UCC security interest in stock pledged by a guarantor and for a deficiency judgment against the guarantor. The parties brought cross-motions for Summary Judgment and the Court granted the lender’s motion in its entirety. Plaintiffs subsequently appealed and the Minnesota Court of Appeals affirmed the decision of the District Court, but for one issue. Plaintiffs’ petition for review by the Minnesota Supreme Court was denied. Minnesota Court of Appeals File Nos. A10–857, A10–1583.