Q: I am a creditor in an Chapter 11 Bankruptcy case . I inherited land which produces / pumps oil. This land was inherited
My question is. Can the Oil Company get out of paying my family it's Royalties?? There's millions owed to us. We are unsecured creditors. How can we become a ""Priority" in this case? Help... Court has been through a 3x's Arbitration(?) Final Hearing is set for Sept 10. All petitions must be in by 9-3-19. If my petition isn't filled out properly will my claim be denied??? Please help me.
A: In most cases, an oil company in bankruptcy must pay current royalties to its mineral owners with whom it has active oil and gas leases. Past royalties are often treated as claims against the bankruptcy estate. Whether the claim is secured or unsecured, or priority or nonpriority, depends on the terms of your oil and gas lease and a number of other factors. It is critical to retain a bankruptcy attorney to prepare and file an appropriate proof of claim for you and to represent you in the bankruptcy proceeding and protect your interests. Bankruptcy law is complex and it is not recommended that you represent yourself. If you do not know bankruptcy law, you can easily inadvertently waive your rights against the oil company.
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A: To supplement my previous answer: if pleadings are not properly worded or are filed late, you may lose your rights against the oil company completely. The Bankruptcy Rules are complex and to make sure your pleadings are correct and timely filed, you really do need the assistance of a bankruptcy attorney.
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