Bankruptcy | Creditor’s Rights

Debtors who fail to pay or are falling behind payments can be challenging at best for creditors and a nightmare on occasion. But when nonpayment and other default issues arise, what legal options are there? What rights do creditors have? What steps should creditors take to protect their collateral and secure their investment?

If you’ve loaned money or provided goods and services in good faith, but are having a hard time getting it back, it’s time to seek the help of a creditor’s rights attorney.

What Is A Creditors Rights Attorney?

A creditor rights attorney protects your rights as a creditor and collects outstanding debts from individuals or businesses that haven’t been paying you back as agreed. If you’re having trouble collecting payments from a debtor, a creditor rights lawyer can develop strategies and put them in play. They can also represent you in court, if and when the need for legal action arises.

Beyond litigation, creditors rights attorneys suggest alternative routes of attacking the matter at hand. If you’re a secured creditor, your lawyer might recommend options like executing promissory notes, negotiating workout and forbearance agreements, loan modifications, judicial foreclosure, non-judicial trustee sales, or the use of restructuring professionals to aid distressed borrowers.

Further, creditor rights lawyers assist in settling disputes between multiple creditors trying to collect money from the same individual. Fighting with other creditors can be a headache. In which case, your attorney can initiate negotiations with the other party to protect your interests.

Creditors and Bankruptcy

Outside of bankruptcy, creditors have plenty of available options to enforce debt collection. But once the debtor files for bankruptcy, the situation changes and demands more exacting measures.

Because collections have to cease when the debtor declares bankruptcy, the creditor is expected to experience a drastic decline in receivables. Worse, the debts may even be discharged. But to protect creditor’s rights in bankruptcy, the law allows creditors to apply for relief in the court. Upon the granting of relief, creditors can then resume their collection efforts even when the bankruptcy proceedings still await settlement.

It’s vital for creditors – banks, finance companies, and smaller lending firms – to be well-represented during the progression of the bankruptcy proceedings. Aside from relief application, an experienced creditors rights lawyer can protect your bankruptcy creditor’s rights and ensure that you have a say in whatever decision or payment method is made.

Creditor’s Rights Attorneys You Can Count On

Getting paid and cutting losses requires experience. There is always some risk involved in acquiring the collateral even if it is your right to do so. Many creditors found themselves in a bind for taking aggressive action, to which the debtor responded by seeking court protection. If you want things to be settled fast and without damaging consequences, you need lawyers who have had years and years of practice in the area.

Provident Law® represents institutional and non-institution creditor’s rights, seeking to protect and maximize their collections from their slow-paying or non-paying customers. We pursue these claims efficiently, ethically, and diligently whether proceeding informally through negotiations and settlement workouts or litigating through the courts. Our attorneys are highly skilled, professional, and experienced and are just as home justice and state courts as they are in federal district and bankruptcy courts.

As a creditor, you have rights. And our attorneys at Provident Law® can offer you sound legal advice and help you navigate the difficulties associated with debt collection and settlement.

If you have any debt-related concerns that need to be addressed, we can help. For questions and more information, call us at (480) 388-3343.

We Are Experienced In Many Facets of Bankruptcy and Creditor’s Right Issues

  • Commercial litigation
  • Bankruptcy (creditor representation)
  • Creditor representation in Chapter 7, 11 and 13 matters.
  • Adversary proceedings.
  • Lift-stay motions
  • Judicial and non-judicial Foreclosures,
  • Wage garnishments
  • Collection lawsuits
  • Debt settlement
  • Judgment enforcement
  • Workouts, receiverships, injunctions
  • Proofs of Claim (preparing and defending)
  • Repossession
  • Writs