Vero Beach Creditor Representation Attorney
Bankruptcy is often thought of as a debtor-centered process. But creditors also have important legal rights in any type of bankruptcy case. In order to assert and protect those rights, you need to work with a qualified Vero Beach creditor representation attorney who understands the bankruptcy system and will zealously represent your interests in court.
The attorneys at Markarian & Hayes offer professional, full-service bankruptcy representation to creditors. You should never assume that a bankruptcy petition means there is no hope for ever collecting on a legitimate debt owed to you. However, time is of the essence in bankruptcy–if you delay in seeking representation or filing a creditor’s claim, you may end up losing your rights. Do not let that happen to you.
What Can a Creditor Do When a Debtor Files for Bankruptcy?
When a debtor files for bankruptcy, an “automatic stay” goes into effect. This means creditors must immediately cease any ongoing or planned collection activity. But creditors may also file a motion with the bankruptcy court to “lift” or obtain “relief” from the stay. Secured creditors–such as mortgage lenders–frequently seek such relief in order to protect their interest in the collateral property. If granted, the creditor may resume any prior collection activities as directed by the court.
Beyond the stay, creditors have a legal right to participate in the bankruptcy process itself. This includes filing proofs of claim–the debt owed–and participating in meetings of the creditors. In Chapter 11 or Chapter 13 cases, the creditors also have the right to review and “confirm” the debtor’s proposed reorganization or repayment plans. And in some cases, the creditors may propose their own alternative plans.
Creditors may also need to initiate or participate in adversary proceedings. These are disputes that arise during the course of a bankruptcy case. For example, if a creditor wishes to challenge the dischargeability of its debt, it can sue the debtor and bankruptcy court and seek a determination from that the debt will “survive” bankruptcy.
The debtor may also initiate an adversary proceeding against the creditor. This often happens when the debtor believes the creditor has violated the automatic stay, i.e. resumed collection activity without first obtaining relief from the court. Such allegations must not be taken lightly. The debtor–and sometimes even other creditors–may recover civil damages against any creditor caught violating the stay.
Our Vero Beach Creditor Representation Attorneys Are Here to Help You
Bankruptcy is primarily concerned with helping debtors obtain a “fresh start” free of their existing debts. But creditors who loaned the debtor money in good faith also have the right to seek compensation–to the extent permitted by law–as part of the bankruptcy process. The best way to make sure your debt is properly addressed is to work with an experienced Vero Beach creditor representation attorney who understands every aspect of the bankruptcy system.
Contact Markarian & Hayes at 772-794-3379 to schedule a confidential review of your situation with a member of our legal team today.