Creditor’s Right Attorney
When an individual or business you have loaned money to files bankruptcy, you become a creditor in their bankruptcy proceeding. If you, as a creditor, receive a bankruptcy notice, you may assume your investment is lost. This is not necessarily so. Creditors still have legal rights to the bankruptcy estates of their clients. A skilled creditor’s rights attorney is a valuable ally for a creditor throughout their debtor’s bankruptcy process.
Creditor’s Rights in Bankruptcy
If you’re a creditor and your debtor files for bankruptcy, you are entitled to:
- A portion of the distribution through the bankruptcy estate, based on the priority of your claim.
- Present your case in court for matters of the liquidation of the debtor’s non-exempt assets, payments from the assets of the state, and the debtor’s plan.
- Challenge a debtor’s right to a discharge.
Don’t miss an opportunity to pursue recovery of your money. Swift action is necessary to receive the maximum benefits in a bankruptcy proceeding. The prudent creditor will contact a creditor’s rights attorney right immediately upon receipt of a bankruptcy notice.
Steps as a Creditor
After you’ve received a notice of bankruptcy, you are required by law to stop any collection action due to the automatic stay. There are other steps to you may take, however:
- File a proof of claim with the court. Be sure to act before the deadline on the notice.
- Determine if your claim is securable by debtor’s assets. Secured creditors have the highest chance of relieving the automatic stay.
- Consider if your claim is dischargeable. If so, you can take steps to challenge the discharge. You will need the help of a skilled creditor’s rights lawyer with this.
- Share information with the trustee. If you suspect bankruptcy abuse, you should provide the trustee with any documents that may help prove so.
- Monitor the progress of the case. The court may dismiss the bankruptcy, or a no-asset case may become an asset case from which you can receive a dividend.
With over a decade of experience behind us, the skilled creditor’s rights attorneys at Bennett Weston can help you understand bankruptcy law and help you recover your money to the extent possible. We have used our legal skill to help unsecured creditors, asset-based lenders, clients facing financial distress, and others seeking assistance in the bankruptcy process. Contact us for a free consultation to see what else we can do for you. No matter what stage of the process you are in, our Dallas bankruptcy attorneys can help with every step and give advice on the best course of action.