Often, there are creditors who receive a notice of bankruptcy and assume they have no rights. However, creditors’ rights refer to a set of provisions that are designed to protect creditors when collecting money they are owed. It may give the creditor the right to place a lien on a debtors property, force a sale of the debtor’s property, establish garnishment procedures, and have certain purchases made by the debtor set aside. A Carrollton, Farmers Branch and Addison bankruptcy attorney can assist with creditors’ rights.
What are your Rights as a Creditor?
When a customer of the business does not pay his or her debt, there are several ways a creditor can collect payment from the customer. However, there are certain rights that depend on the actual debt. A qualified Carrollton, Farmers Branch and Addison bankruptcy lawyer can explain the rights creditors are allowed to have. Here are the rights to which a creditor is entitled:
- The right to file a lawsuit against a debtor
- The right to have a share in the distribution of an estate’s sale during bankruptcy
- The right to attend a court hearing where the debtor’s plans during Chapter 11 or 13 cases are heard
- The right to request that the debtor honors the debt even if the debt was discharged
What can Creditors do?
A creditor has several options to request repayment of debt. A few use the power of the court to gain repayment. Similar to garnishment, a creditor may perform two common pre-judgment procedures. The common pre-judgment procedures are:
- Replevin — A creditor has the right to take back property if the debt is not repaid
- Attachment — A creditor has the right to take the property after the court authorizes it
Who Can Help?
If you have been afflicted with any financial problems and are wondering if bankruptcy is the right option for you, contact NNK at 972-939-4878 for a free consultation. Bankruptcy matters are complicated and can take up to a few months to resolve, so it is important to contact an attorney as soon as possible. At NNK, we are committed to helping your achieve financial freedom and gaining control over your life.
