What rights does the creditor possess when the debtor declares bankruptcy? Here is the solution.
1) The creditor may receive a portion of the bankruptcy estate during distribution. Priority and nature of the claim determine whether they receive a portion, and if they do, how much they receive.
2) A creditor may present arguments to a bankruptcy court regarding the liquidation of the debtor's (non-exempt) assets and payments, as well as the debtor's repayment plan.
3) A creditor may contest the right of a debtor to obtain a discharge of debts. Additionally, they could inquire about the discharge of their particular debt. However, they require the assistance of a competent bankruptcy attorney.
In Maryland, obtaining legal counsel ensures that creditors' rights are not violated. Here are several additional suggestions for creditors.
Participate in no collection actions. No phone calls, no messages, and no doorstep visits from collection agents. The automatic stay the debtor receives upon filing for bankruptcy renders all of these illegal.
File a claim immediately with the court. Obtain the claim form, complete it, and submit it with a copy of the claim's contract/judgment. The notice of bankruptcy would include the registration date and location.
Determine if the claim is dischargeable. Consult with your Maryland bankruptcy attorney for assistance. Your counsel must file an adversary proceeding if the debt is not dischargeable. This would ensure that your claim survives bankruptcy.
Determine whether the debt is secured or unsecured. For secured debts, where the creditor has a lien on the collateral, the possibility of receiving a portion of the distribution rises. Not necessarily the case for unsecured claims.
Provide the court-appointed trustee with information. If you believe that the debtor is misusing the bankruptcy option, you have the right to provide any information that could assist the trustee in uncovering the truth.
Obtaining adequate legal counsel and assistance is the first step in ensuring a proper resolution.""
" - https://www.affordablecebu.com/
