Creditor Rights In The Bankruptcy Process
One of the most frustrating situations for a creditor is when the person who owes you money files for bankruptcy protection. The federal bankruptcy code provides countless ways to protect the debtor, and oftentimes it seems that the creditor’s rights are completely ignored. This is when you need an attorney who knows the rights that are afforded to the creditor and how to take full advantage of those rights. The attorneys of Crislip Philip have years of experience representing creditors in bankruptcy courts across Memphis and western Tennessee. We regularly represent banks, mortgage companies, finance companies, landlords, small businesses and individuals in the federal bankruptcy actions.
What Happens When A Debtor Files For Bankruptcy?
Once an individual files a bankruptcy, there is an automatic prohibition in most cases that goes into effect and prevents a creditor from taking any actions against the individual. In order to proceed against the bankrupt individual, you have to get permission from the bankruptcy judge. This means that evictions, repossessions, foreclosures, lawsuits, phone calls, garnishments and any other activity that can be construed as a “collection” action must cease immediately. You need an attorney who can act quickly to either secure an order allowing you to proceed against the debtor or have an order approved by the court that adequately protects you and preserves your ability to pursue your lawful remedies.
Understanding Chapter 7 And Chapter 13
In addition, there are several different types of bankruptcies that can be filed. The most common ones are often referred to as Chapter 7 or Chapter 13 cases. The rights of both the debtor and creditor can vary greatly depending on which type of bankruptcy is filed. In Chapter 7, the bankruptcy trustee is charged with gathering any assets of the debtor and distributing what remains after fees and expenses to the creditors. The percentage that a creditor might receive is based on issues of priority and whether the underlying obligation is secured or unsecured. In Chapter 13 bankruptcy, the debtor typically pays a monthly amount to the bankruptcy trustee, who then pays a monthly amount to that person’s creditors based upon a bankruptcy plan approved by the court. The amount that you will ultimately be paid and the monthly payments you will receive are dictated by the plan and if you do not have an attorney representing you who knows your rights, you may be losing money to which you are entitled.
Contact Our Firm For Knowledgeable, Solutions-Centered Guidance
When facing the complexities of bankruptcy, it is crucial for creditors to have knowledgeable and solutions-focused attorneys by their side. We understand the frustration and challenges you can face as a creditor when a debtor declares bankruptcy. Let us protect your financial interests. Our dedicated team is ready to provide you with cost-effective and detail-oriented support. Call us at 901-201-5078 or 800-335-9613 (toll-free), or reach out online to learn more about how we can assist you in safeguarding your creditor rights and pursuing the solutions you need.