Creditors’ Rights When A Debtor Files For Bankruptcy
Debtors (and too many creditors) often make the mistake of thinking that the U.S. Bankruptcy Code automatically protects them from all further collections actions — as if creditors give up their rights to recover any money or assets owed.
The truth is, just because someone files for bankruptcy in Texas doesn’t mean the creditor loses all rights to pursue repayment. U.S. bankruptcy laws are in place to protect the creditor, too.
From our offices in Dallas, Kaplan & Cruz, PLLC, provides creditors’ rights services for national and international creditors whose debtors have filed for bankruptcy in a Texas court.
When A Debtor Gets Served With A Lawsuit, It Becomes A Whole New Game
If you are a national or international creditor who needs to protect your rights in a U.S. bankruptcy court in Texas, talk to an attorney at Kaplan & Cruz, PLLC. We are recognized among Texas’ pre-eminent creditors’ rights litigation firms.
We are not a debt collections agency. When a debtor files for bankruptcy, having a knowledgeable attorney on your side gives you access to the courts and equal protection under the law.
We Help You Protect Your Rights As A Creditor
Creditors are allowed to file an adversary proceeding to challenge a debtor’s attempt to have a debt written off or reduced by the bankruptcy judge. A common reason to file for an adversary proceeding is to argue that the debt falls into an exception for discharge, including fraudulent conveyance of a debt, or the bankruptcy was filed in bad faith.
The creditor may also involve the bankruptcy trustee to file an adversary proceeding, typically on the grounds of inaccurate financial reporting or fraudulent conveyance.
Hire A Lawyer Prior To Bankruptcy — The Authority To Take The Case To Court
It makes sense to have a knowledgeable creditors’ rights attorney protecting your rights before your debtor files for bankruptcy. Throughout the proceeding, you will have sound legal counsel and access to the courts.
To protect yourself from losing money through a discharged debt, you will need to file a proof of claim. If the discharge is disallowed in the 341 creditors’ rights meeting or overturned in the adversary proceeding, you will still have to pursue a judgment or collections action to recover the money owed.
Unlike a collection agency, a licensed attorney can use the very real threats of a criminal contempt of court charge or civil lawsuit to affect results.