How Creditor Rights Impact You During a Bankruptcy
When creditors are attempting to recover a debt, they will do almost anything to protect their own interests. Even if you tell them that you are considering filing for bankruptcy, they might try to tell you that the money you owe them can't be included in the bankruptcy, and that, if you try, they will object to it and you will have to pay it anyway.
While there may be kernels of truth to the things that creditors tell you, the bottom line is that they are looking out for their own interests and no one else's. At Walton Legal Services, we provide comprehensive debt-relief services to clients throughout Indianapolis. Creditor rights attorneys collect large fees to help companies recover debts. Our lawyers are committed to just one thing, helping you get back on the right financial path.
Walton Legal Services: More than 30 years | More than 30,000 bankruptcies filed
Understanding the Rights of Creditors
Within the context of your bankruptcy, creditors' rights are fairly limited. We have assembled some information that should help you understand the potential actions that could be taken by a creditor during the course of your bankruptcy.
The 341 or Creditors' Meeting: Within the first 30 to 45 days after your bankruptcy petition has been filed, there will be a meeting where you are put under oath to answer questions from your trustee. Creditors are invited to this meeting though few, if any, actually attend. If they do, they are also allowed to ask you questions under oath. If the creditor feels that its debt should not be included in the bankruptcy, it can file an action asking the court to consider the dischargeability of the debt or the validity of a lien.
Preference Litigation: If you repaid a debt within the 90 days prior to filing for bankruptcy, there is a good chance that the creditor will be required to give that money back so that it can be included in the funds available to repay all creditors. Though this type of action is connected to your bankruptcy, it shouldn't require your involvement.
Priority Litigation: Some creditors will seek to have their debts prioritized higher on the list in an effort to ensure that they receive the maximum amount of money possible. Similar to preference litigation, this is a matter that is connected to your bankruptcy but not something that needs your personal attention.
Discuss Your Questions With a Columbus Creditor Protection Attorney
If you are looking for an Indianapolis debt-relief lawyer to help you understand the rights of creditors, call one of our Indianapolis law offices, call our Columbus, Indiana, office or contact us online. We offer free initial consultations, and we give you detailed up-front information about our fee arrangements, so there will be no surprises.
We are a debt relief agency. We have helped more than 30,000 people file for bankruptcy relief under the Bankruptcy Code.
