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5720 Carmichael Road, Montgomery, Alabama 36117

Bankruptcy Creditor’s Rights

Montgomery, Alabama bankruptcy attorney 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 toward debtors in bankruptcy. We know the bankruptcy code inside and out, 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 his 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 go to the head of the line. Often the issue is cut and dry, 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….” If the debtor took on the debt in bad faith or through some kind of dishonest manipulation, he can’t discharge that debt. Likewise, if you believe that there is 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!

When bankruptcy filings are so numerous — especially today — the court is eager to decide cases fast. If you delay asserting your rights, you can 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.