Maintaining and Defending Creditor Rights in Bankruptcy Cases
Despite what many debtors may think, creditors simply do not renounce their rights in the event of a bankruptcy situation. In fact, creditors wield many options in bankruptcy litigation that can help preserve their rights while additionally minimizing their potential losses.
Bankruptcy in the state of Florida is a legal proceeding that helps individuals or businesses eliminate or restructure their debts as overseen by a bankruptcy court. Typically, a creditor will receive a notice that someone that owes them money files for bankruptcy. They may feel like they don’t have rights in the process. In this scenario, a creditor rights attorney in Miami can help.
The first thing a creditor must understand about bankruptcy is that a debtor simply filing for bankruptcy creates what we call an “automatic stay.” This is a court-imposed, automatic injunction that forces all creditors to cease their collection activities entirely.
The good news is that creditors may file a motion with the bankruptcy court that enables a granted relief from the automatic stay. As a result, creditors can begin their collection or litigation activities once again.
In debt collection situations, it remains exceedingly essential for creditors to seek relief from an automatic stay as soon as possible. This can help them expedite their debt collection processes versus the alternative, waiting for liquidation and the conclusion of the bankruptcy proceedings.
Additionally, creditors should seek professional, expert assistance from a creditor rights attorney in Miami for the best possible outcome.
