Attorneys Helping Creditors Respond To Debtor Bankruptcy Actions

Bankruptcy is a key strategy for consumers to use when they can no longer afford the debts they’ve accumulated. This raises a specific set of difficulties for companies, which can impact their bottom line. Skilled, dedicated legal representation can provide you with the information and representation you need to make wise business decisions.

The attorneys of BDF Law Group work with large listing companies and smaller private institutions that are creditors in bankruptcy proceedings. They work with clients in Addison, across Texas and throughout the country, pursuing concrete methods to secure their clients’ financial priorities for residential, commercial and automotive loans in bankruptcy. The firm’s high standard of service stands out as a major benefit to clients across the country.

How The Firm Can Help You With Loans In Bankruptcy

Typically, a loan in bankruptcy, such as a mortgage or car loan, is a secured debt. This means that you have the right to repossess the property purchased by the loan if you do not receive payment. Additionally, secured loans gain preferential treatment in bankruptcy proceedings.

In these instances of secured loans in bankruptcy, the lawyers of BDF Law Group represent the institution. They make a case for the share owed to you in bankruptcy court, addressing issues including:

• Objections to discharge
• Proofs of claim
• Adversary proceedings
• Post-petition financing
• Debt reorganization

Additionally, car loans, home mortgages and commercial property loans often end up in different chapters of the Bankruptcy Code. Car loans and home mortgages are handled under Chapters 7 and 13, while commercial loans may be a part of Chapter 11.

No matter the chapter of bankruptcy used, the team at BDF Law Group has the experience and insight to find a resolution for you. Your rights as a lender are extensive and deserve the protections the law can provide.

Answers To Common Questions About Creditors’ Rights In Bankruptcy

If your company or institution hasn’t had to deal with debtors in bankruptcy very often, you may have questions about your rights and obligations. Some of the common questions are answered below:

What is the difference between filing Chapter 7 and Chapter 13 bankruptcy?

Debtors often find that they have the option to file either Chapter 7 or Chapter 13 bankruptcy to relieve their overwhelming financial obligations. The differences between these two bankruptcy options include the following:

• Chapter 7 bankruptcy: Also called liquidation bankruptcy, filers can discharge large amounts of debt within a few months. Filers are typically not required to pay their discharged debts after a successful Chapter 7 bankruptcy filing. This option is especially helpful for people who have very low income or savings. However, in some very rare cases, filers will need to liquidate assets to resolve debts with creditors – only if the value of assets exceeds the limit under state and federal laws.
• Chapter 13 bankruptcy: Debtors who have regular income may file to have their debts reorganized. By reorganizing debts with a Chapter 13 bankruptcy, filers can pay off their debts in three to five years and keep their assets. After completing the repayment plan, the remaining debts can be discharged.

Filers can explore these two bankruptcy options and determine which one fits their needs with the help of our attorneys at BDF Law Group.

What happens if my spouse files for bankruptcy?

Several factors can affect whether one spouse’s bankruptcy filing will affect the other spouse. A Chapter 7 or Chapter 13 bankruptcy filing typically only affects the filing spouse’s credit score – unless the bankruptcy is filed jointly, which can affect both spouses’ ability to apply for loans and credit cards. However, in states that follow community property law, such as Texas, certain shared assets may be lost when filing for bankruptcy. Likewise, shared debts may be relieved in a bankruptcy filing. Speaking with one of our bankruptcy attorneys can help spouses understand the effects of bankruptcy on their marriage.

What are the benefits of having an attorney file bankruptcy for me?

Debtors can seek out an experienced attorney to help them file for bankruptcy. An attorney can help filers explore their bankruptcy options, file necessary paperwork to avoid bankruptcy fraud, maximize the amount of debts relieved and address any concerns about filing for bankruptcy. Our attorneys have our clients’ best interests in mind by communicating with them frequently about the bankruptcy process, protecting their rights and saving them money.

Do I need to abide by the automatic stay?

Yes, you do. Anytime a consumer files for bankruptcy, the court issues an automatic stay that ceases all collection-related activities and communications. This is not a permanent stop, but rather a pause. You do not want to risk penalties or legal liability by violating a court order. Instead, use this time to contact your own attorney to discuss options and next steps.

What recovery options do I have as a creditor with an unsecured claim?

Unfortunately, unsecured debts (those not backed by collateral) are given much lower priority in bankruptcy than secured claims are. That being said, you can participate in the bankruptcy process in an attempt to reclaim at least some of the debt you are owed. Available actions include:

• Reviewing the bankruptcy paperwork to ensure there is no inaccurate information about your business or the debts owed to it
• Attending the first meeting of the creditors
• Filing a proof of claim and filing an objection to the proposed discharge of debt

In a Chapter 7 filing, most unsecured debts are simply discharged. If the debtor files Chapter 13, your debt may be included in a repayment plan, but there is no guarantee the debtor will be obligated to repay in full. Although your options seem limited, it is a good idea to discuss your case with an attorney to determine if there are additional options relevant to your particular claim.

Contact The Firm For Skilled, Attentive And Experienced Representation

When your organization needs the attention of a skilled team with a strong sense of dedication to your case, turn to BDF Law Group. They are ready to get to work and protect your interests through the difficult next steps. Call 972-688-6895 or send an email to find out more.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.