A Philadelphia Creditors Rights Lawyer Answers Your Frequently-Asked Questions
A Philadelphia creditors rights lawyer will take the time you need to understand your rights as a creditor when a debtor has failed to pay. Both debtor and creditors rights are highly complicated topics and mistakes can result in substantial legal penalties.
Knowing your rights and responsibilities as a creditor is one of the most important parts of succeeding in a debt dispute. We will answer some of the most frequent questions we hear, as well as addressing common misconceptions about creditors rights.
Five Frequently-Asked Questions About Creditors Rights
1 – If a debtor has filed for bankruptcy, will I have to write off the amount owed to me?
A Chapter 13 bankruptcy proceeding notification may mean that you will have to write off most or all of that debt, but this is not a foregone conclusion. Creditors do have rights during bankruptcy hearings and a creditors rights or bankruptcy lawyer can help ensure that you get the money owed to you.
2 – What actions can I take once a debtor has filed for bankruptcy?
Your options are limited at this point, as you will be required to cease collections activities and calls until the bankruptcy case is resolved. Continuing collections can result in steep penalties. In some circumstances, filing a motion requesting permission to continue collections activities is possible, and you may be able to influence proceedings so that your interests are protected.
3 – Which has priority, a creditor’s lawsuit or a debtor’s bankruptcy?
With a few exceptions, the bankruptcy would be given priority by the courts. In the event you had already filed a lawsuit against the debtor, and they then file bankruptcy proceedings, your lawsuit will typically be put on hold until the bankruptcy is resolved.
4 – When do I need to file a Proof of Claim?
A Proof of Claim is simply written proof that a debt is owed to you. This documentation is required for any bankruptcy case where money is to be distributed if your claim is allowed. A Proof of Claim is also often required for Chapter 11 bankruptcies. When you are a creditor affected by a bankruptcy, the Court should advise you of the filing deadline for your Proof(s) of Claim.
5 – How will I know if a debt I am owed has been discharged?
You will be sent an official notification from the court clerk’s office, with a list of all debts that have been discharged. In some situations, you may be able to file a lawsuit preventing your debts from being discharged.
Call Alfred Abel for a Highly Qualified Philadelphia Creditors Rights Lawyer
For over 35 years, Alfred Abel Law Offices has served the area as a capable and flexible Philadelphia creditors rights lawyer, alongside other areas of business and personal injury law. Do you need assistance with a debt collection issue? Contact our offices today.
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