The debtors are always in the toughest situation while filing for bankruptcy. Most of us talk about how the debtors will get benefit from filing the case. However, you do not know what the creditors will do while they have learned about bankruptcy filing case. There are bankruptcy lawyers in Tempe Arizona to work for the creditors. Now, we have given you the details on the rights of creditors in the bankruptcy case. As one of the creditors, you will find help from our information.
The debtors pursue the bankruptcy case for having a discharge of their debt. Their bankruptcy filing also prevents you from collecting debt fund. Thus, to deal with everything and to know your own rights, you have to hire one of the best bankruptcy lawyers in Tempe Arizona. This lawyer will be able to make out whether the debtor has a chance to get relief from debt. Your attorney has to know all the rules, related to Chapter 7, 13 or 11 bankruptcy.
Bankruptcy Chapters and the action of the creditors-
The automatic stay may be applicable while the debtor has filed for bankruptcy. This automatic stay prevents you from forcing the debtor in paying off the debt. However, these rules are not applicable for all cases. You may get advantage from it. Not all the debts are dischargeable. Thus, you have to speak to the bankruptcy lawyer to know the debts that you can collect from the debtors. Your attorney will assess your case and find out how you will be able to challenge the bankruptcy of the debtors. You may also take a step for lifting automatic stay. For the creditors, Chapter 13 Bankruptcy filing is much favorable. However, never lose your hope while it is Chapter 7. In some cases, you may find the dismissal of this Chapter or a conversion of Chapter 7 Bankruptcy to Chapter 13.
Secured Claims- What are your rights?
When you are one of the secured lenders, you have some privileges, based on the judgment lien and mortgage. The creditors, having property liens on, will get value, which equals to collateral value or debt amount. The debtor will not be able to use the cash collateral. In case of Chapter 7, the best solution is the recovery of the debt fund, secured with other types of collateral. For Chapter 13, the debtor has to surrender their collateral to you or repay the debt over three to five years. Thus, within a short time, you can get back the fund. To know more of these facts, you can hire the reliable bankruptcy lawyer.
Unsecured Claims- Know your rights-
The unsecured creditors have also the rights, similar to that of the secured ones. The debt on the credit cards and the medical bills is the unsecured debts. However, they are not of the high priority. While you are one of these creditors, it is essential to show proof of all your claims. You may also object to the debt discharge. Hire an attorney to assess all the papers to find out any inaccuracy in them. In few cases, the unsecured creditors do not get the repayment under Chapter 7 bankruptcy.
Bankruptcy of the tenants- What to do?
When the debtor (tenant) has breached your agreement, you may keep away from the effects of automatic stay. While the rental house is not a residence of debtor, the trustee may assume the lease shortly.
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