What May Creditors Expect In Bankruptcy Court?
Answers To Common Questions From Creditors About Bankruptcy Filings
At The Bankruptcy Group, our attorneys and entire legal team welcome questions such as the following from creditors. Our clients who hold loans seek information as well as protection from losses they can prevent when debtors file for bankruptcy.
To schedule a consultation about a creditor’s perspective in bankruptcy, call 888-710-4334 or email us to request a discussion with a bankruptcy lawyer serving California.
What can we expect as creditors after debtors file for bankruptcy?
Answering this question requires an assessment on a case-by-case basis. In the meantime, respecting the limitations imposed by the automatic stay is essential. Violating an automatic stay puts a creditor at risk of harsh penalties from a bankruptcy court. If there is a good reason to seek the lifting of the automatic stay, ask an attorney to help you petition the court accordingly.
If a bankruptcy will include liquidations, what nonexempt assets are available to satisfy creditors?
This is a basic question for which answers will be evident through the review of each individual bankruptcy filing. For example, if there are secured debts, the creditors may recover repayments applicable to those assets – or liquidation of them – as long as the creditors are high on the list of priorities in a bankruptcy reorganization plan. Other key factors may include the total amount of debt that a bankruptcy filer has included in the filing.
What does it take to have debt can be considered nondischargeable?
A lawyer from The Bankruptcy Group may petition the bankruptcy court to allow an adversary proceeding to have the court declare debts are not dischargeable, usually because of some sort of fraud.