Bankruptcy Cases and Creditor Rights
Bankruptcy law remains in place seemingly to protect debtors. However, creditors additionally retain rights under bankruptcy law in any debtor/creditor situation. Unfortunately, when creditors delay relying on and enforcing those rights, they could potentially lose them in a bankruptcy case for a variety of reasons.
The good news is that with creditor bankruptcy representation in Edgewater, this legal representation can alleviate the perceived stilt against creditors by defending and litigating creditor rights.
Our team from the Law Offices of Paul A. Humbert, P.L., are outlining information on creditor defense issues in bankruptcy cases. Read on to learn more about creditor bankruptcy representation Edgewater.
How Does a Florida Bankruptcy Case Proceed?
Bankruptcy cases typically begin with a debtor filing the petition for bankruptcy with the bankruptcy court. Individuals can file a petition, as well as by spouses together. Similarly, a corporation or other entity may also file for bankruptcy as well.
The court will require that a debtor submit statements that outline their assets, income, liabilities, as well as the names and addresses of any creditors. This required information will also include how much the debtor owns the creditors.
Filing this petition mitigates debt collection actions against a debtor or their property. This is what the legal system refers to as an “automatic stay”. So long as this stay remains in effect, creditors cannot continue collection activities. This includes lawsuits, wage garnishments, and other collections efforts like telephone calls or correspondence demanding payment.
Creditors then receive the notice from the court that the debtor filed for bankruptcy. In some instances, the court will allow the debtor to plan and reorganize their finances to repay the creditors. Some others will necessitate asset liquidation to resolve the debt.
When liquidation remains the viable course of action, debtors may wield little to no assets or money to repay creditors. As a result, the cases often experience issues and disputes. The court may choose to enable the debtor to discharge their debts without objection. This essentially means that the debtor no longer remains liable to repay their debts to creditors.
Unfortunately, without creditor bankruptcy representation in Edgewater, you may lose everything in the case the court grants a discharge. Legal representation remains imperative for a positive outcome and best representation of your rights.
Creditor Rights in Bankruptcy Cases
When you receive notice that a debtor filed for bankruptcy, all is not lost. You still wield rights concerning the debt this individual or other entity owes you. The most common time that bankruptcy law will affect collection activities concerns the aforementioned “automatic stay.”
Depending on the specific type of bankruptcy petition that the debtor files and their plan, in addition to the debts they owe you, the next course of action for a company and their creditor bankruptcy representation in Edgewater will vary.
Creditors also wield rights regarding what remaining debt their debtor owes in situations where the debt involves priority or secured loans. Experienced creditor rights and debt collection lawyers can guide you through this situation, advising and serving your rights as a creditor. This includes making decisions on what you can do to affect the outcome in a bankruptcy hearing.
Legal services in these matters extend to filing a proof of claim In the legal proceeding. Failing to submit this in a timely fashion can jeopardize a creditor’s rights to the debtor’s assets and finances significantly.
Nonetheless, creditors must face various legal issues during any bankruptcy proceeding. Experienced creditor bankruptcy representation in Edgewater is the ideal method to ensure the best possible outcome and repayment or recompense regarding their debt.
Creditor Bankruptcy Representation in Edgewater from the Law Offices of Paul A. Humbert, P.L.
Simple because a South Florida area debtor files for bankruptcy does not mean that you cannot collect the debt. You still possess notable rights to collect assets and repayment for what a debtor owes you.
When you need assistance in a bankruptcy case with a debtor, creditor bankruptcy representation in Edgewater serves as the preeminent solution to collect an unpaid debt. Enlisting legal representation can help file motions and relief from automatic stays, additionally litigating to ensure timely and adequate debt repayment.
Our attorneys at the Law Offices of Paul A. Humbert, P.L. regularly handle bankruptcy cases with unique insights and perspectives. They gained this knowledge and experience by representing both debtors and creditors from each side of the litigating table.
To learn more about how our firm can help you, contact us today!
- “Statutes & Constitution :View Statutes :->2012->Chapter 222 : Online ….” http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/0222ContentsIndex.html&StatuteYear=2012&Title=-%3E2012-%3EChapter%20222.
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