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A Chapter 13 Bankruptcy Attorney in Philadelphia Examines Creditors’ Rights

Notification of a Chapter 13 bankruptcy proceeding can be a blow to creditors and many assume – often erroneously – that they will have to write off most or all of that debt.  Creditors have rights during bankruptcy hearings and can often influence the proceedings to ensure they get the money owed to them.

Hiring a qualified Chapter 13 bankruptcy attorney in Philadelphia is a good first step, as an attorney can advocate for and help protect the creditor’s rights.

A Chapter 13 Bankruptcy Attorney Explains Creditors’ Rights

Chapter 13 bankruptcy is designed to give a debtor time to pay debts without taking away his/her property.  In many cases, those debts will be fully repaid typically over a timeframe of 3-5 years.  However, a judge’s discretion or a creditor’s participation can often determine whether a particular debt is paid in part or not  at all.

Chapter 13 bankruptcy attorney in PhiladelphiaCreditors have several rights associated with Chapter 13 bankruptcy filings by debtors.  These include:

  • The right to question the debtor
  • The right to be part of repayment plan, such as their prioritization during payback
  • The right to investigate the debtor’s assets
  • The right to challenge a discharge of their debt

Each bankruptcy case is unique, with much determined by the judge.  These cases often involve a lot of negotiation which is why having the guidance of a bankruptcy attorney is valuable.

Certain things exist that a creditor must be aware of in order to remain within the law and retain all rights.  The legal requirement is that creditors cease any and all debt collection activities once they are notified of the bankruptcy filing. This rule includes all actions against co-debtors in a chapter 13 case, if the debt is shared between multiple people, co-signed or guarantied.

Additionally, creditors must file a valid Proof of Claim. Following these guidelines is how you establish your claim’s legitimacy.  Failing to adhere to these regulations can result in your claim being discharged during the bankruptcy proceedings.

A qualified chapter 13 bankruptcy attorney can advise on all of these areas.

If Your Claims Are Being Contested in Bankruptcy Court, A Chapter 13 Bankruptcy Attorney in Philadelphia Can Help

As a creditor, you have rights and the ability to protect your owed assets in court.  A skilled attorney can help ensure that you get what you are owed, including representation during the creation of repayment plans and help ensuring that the debtor is being entirely honest about assets.  For assistance in dealing with a bankruptcy claim, contact Alfred Abel Law Offices today.