Bankruptcy Creditor’s Rights
Bankruptcy Attorneys Assisting Creditors
Although bankruptcy laws are quite compassionate toward individuals who’ve fallen on hard times, they can be harsh on creditors who are forced to absorb a loss that helps finance the debtor’s fresh start. However, if you’ve received a notice of bankruptcy by someone who owes you money, don’t assume that you have no rights. Since 1993, Chambless Math Carr, PC has been helping creditors assert their rights in bankruptcy. We know the U.S. Bankruptcy Code, and we can advise you on the steps to take to improve your chances of being repaid. We are available to assist you in cases related to:
- Chapter 7 bankruptcy
- Chapter 11 bankruptcy
- Chapter 13 bankruptcy
What an “automatic stay” means to a creditor
An automatic stay is an injunction by the bankruptcy court that immediately prohibits creditors from seeking repayment of debts from the debtor. It doesn’t mean that you’re out of luck, but it does mean that any efforts to recover what you are owed must be directed toward the court. We help creditors in reviewing a debtor’s bankruptcy petition to see precisely where opportunities exist for the creditor to advance its claim. We are aggressive in meeting the court deadlines, which come quickly and require detailed responses. We take the stress off our clients’ shoulders.
Secured versus unsecured debt
A loan that is secured by collateral gives the creditor a lien against a debtor’s asset. This is a huge advantage in bankruptcy court, where secured creditors often go to the head of the line. Often the issue is clear, but where there is ambiguity about whether a debt is secured, a skilled attorney can make the difference to a creditor’s chances of recovery.
The honesty requirement
The U.S. Supreme Court has stated that the Bankruptcy Code “gives to the honest but unfortunate debtor…a new opportunity in life….” Local Loan Co. v. Hunt, 292 U.S. 234, 244 (1934). If the debtor took on the debt in bad faith or through some kind of dishonest manipulation, he may not be able to discharge that debt. If you believe that there has been a misrepresentation or fraud — such as attempting to hide assets — in the debtor’s bankruptcy petition, you must bring those objections to the court. An experienced bankruptcy attorney can present a clear and convincing argument to help your cause.
Bankruptcy proceedings move quickly — contact an attorney today!
Bankruptcy proceedings often move swiftly. If you delay asserting your rights, you could easily lose them. To schedule a free initial consultation with a seasoned bankruptcy attorney dedicated to helping creditors today, call Chambless Math Carr, PC at 334-272-2230 or contact our office online.