Creditor Bankruptcy Representation in Boca
What Rights Does a Creditor Have During Debtor Bankruptcy Cases?
When many people think about bankruptcy law in Florida, they think it primarily protects debtors from unlawful or unethical collection practices and harassing behavior and debt relief. However, creditors retain rights to some property depending on various factors as a debtor bankruptcy proceeds.
They cannot delay enforcing their rights and taking action to reclaim property liquidated as well as their right to pursue a portion of the bankruptcy property or they could potentially lose out on reclaiming was the debtor owes them.
Our firm for creditor bankruptcy representation in Boca and throughout South Florida is The Law Offices of Paul A. Humbert, P.L. We want to outline some information regarding creditor defense issues that can arise during a debtor bankruptcy case. Read on to learn more.
What Goes on During a Florida Bankruptcy Case?
Bankruptcy cases will begin once a debtor files a petition for bankruptcy with the court. An individual may file for bankruptcy or for married parties they may file collectively. Corporations and other business entities file for bankruptcy using a similar procedure.
The bankruptcy court requires that the debtor submits documents that will outline their real estate and other assets, liabilities, income, and the names and addresses of any creditors. The statements filed will additionally include how much the debtor owes to these creditors as well.
Filing a petition will mitigate debt collection activities against the debtor and their property in what the court calls an “automatic stay”. As long as the automatic stay remains in effect, creditors cannot continue collection activities that may include:
- Phone Calls
- Demand Letters
- Wage Garnishment
After the debtor files for bankruptcy, the creditor will receive a notification from the court concerning the filing. Depending on the court and the type of bankruptcy the debtor files, the debtor may be allowed to plan out or reorganize their finances to repay creditors. Some cases may also rely on asset liquidation to resolve outstanding debts.
Post-liquidation, debtors often have little to no assets remaining to pay off creditors. In this scenario, the court may additionally enable a debtor to discharge debts. This means that the debtor no longer remains liable for repaying a creditor.
This is why securing creditor bankruptcy representation in Boca remains so crucial. Without proper creditor defense, the debts may never be repaid, and creditors could lose everything owed should a court grant a discharge.
Hire a Creditor Defense Attorney in South Florida
If you receive notice that a debtor filed for bankruptcy, you may think that you have no rights to the money owed to you by the debtor. Contrarily, creditors do have rights to pursue some recompense in the event a debtor declares bankruptcy.
Experienced firms for creditor bankruptcy representation in Boca will guide you through the complex and convoluted practice area of bankruptcy law, helping you to achieve the best possible outcome and the largest portion of assets to repay outstanding debt.
Legal provisions in these matters include and extend to filing a proof of claim, an action to levy the debt owed during the bankruptcy proceeding. Failing to submit this documentation in a timely fashion can result in jeopardizing your rights to a debtor’s assets and finances.
Creditors will face various legal issues that can arise during a debtor bankruptcy proceeding. Experienced creditor bankruptcy representation in Boca remains crucial to ensure the best results including repayment or recompense for what a debtor owes.
Creditor Bankruptcy Representation in Boca | The Law Offices of Paul A. Humbert, P.L.
Simply because a debtor chooses to file for bankruptcy does not automatically alleviate their liability and responsibility to repay their debts. As a creditor, you still have the right to collect assets and repayment for what they rightfully owe.
This is not a legal situation to delay or take lightly. Creditor bankruptcy representation in Boca from the Law Offices of Paul A. Humbert, P.L. remains available to assist and guide clients through the debtor bankruptcy procedure, serving as the preeminent legal resource to help creditors collect unpaid debts.
By hiring a creditor defense attorney, you will gain a legal partner committing to representing your best interest in filing motions and relief in response to automatic stays and litigating the case to ensure timely and adequate repayment.
Our firm from the Law Office of Paul A. Humbert, P.L. regularly handles bankruptcy and creditor defense cases and brings unique insights and perspectives to the table. To learn more on how our firm can assist you, reach out to us today!