Creditors Need an Attorney in a Texas Bankruptcy
We tend to think of debtors first when discussing bankruptcy,but creditors are a very important part of the process.The bankruptcy attorney in Tyler,TX can represent a debtor or creditor depending on who is seeking legal assistance.As a creditor there are certain responsibilities you need to meet in order to protect your legal rights to collect amounts due.There is never any guarantee the creditor will collect any amount,but an attorney insures everything possible is done to collect the creditor's share of any potential settlement.
Taking Care of Business
When someone files bankruptcy,the creditor is notified.It would seem as if responding to the bankruptcy court trustee and re-staking your claim to payment would be enough.However,you may need to attend one or more meetings to insure that your legal rights are fully protected throughout the process.
The level of direct involvement in the bankruptcy proceedings will depend on whether it is a personal or business bankruptcy and the condition of the financial affairs of the debtor.A business that has many assets would be more likely to be able to pay a creditor something on every dollar as opposed to a consumer who has a car payment and mortgaged house but no cash saved.
The 341(a) meeting is a court meeting where the debtor must show evidence of financial affairs.If it is a Chapter 7 meeting, the court will probably appoint a trustee or create a creditors committee. This meeting is your chance as a creditor to ask questions and get clarification from the debtor on financial matters.
Making Your Claim Known
The bankruptcy attorney in Tyler, TX can assist a creditor in a number of ways.
>> Filing a proof of claim which documents the amount owed the creditor
>> Reviewing the trustee recommended distribution of assets among creditor
>> Filing responses with the trustee as necessary
>> Consulting with the bankruptcy trustee on behalf of the creditor
>> Filing objections to a Plan of Reorganization if required
>> Obtaining and reviewing all court documents related to the bankruptcy
>> Keeping track of the status of the case
Since a debtor is attempting to get debts discharged,it's important for the creditor to have a bankruptcy attorney in Tyler, TX keeping track of the bankruptcy proceedings, claims, processes,documents and filings.Some cases can get very complicated and only an attorney is fully qualified to understand the legal ramifications of any actions.
Protecting Creditor Interests
From the creditor's viewpoint,it may seem quite unfair that someone is able to get a creditor's debt discharged.People assume loans in good faith, but circumstances change making it difficult to meet financial obligations.Creditors will sometimes end up losing their money because bankrupt debtors either can't pay at all or can only pay a few cents on the dollar once assets are liquidated.
Another reason a creditor should be represented by a bankruptcy attorney in Tyler, TX is simply because the attorney can help keep events in perspective.
Taking Care of Business
When someone files bankruptcy,the creditor is notified.It would seem as if responding to the bankruptcy court trustee and re-staking your claim to payment would be enough.However,you may need to attend one or more meetings to insure that your legal rights are fully protected throughout the process.
The level of direct involvement in the bankruptcy proceedings will depend on whether it is a personal or business bankruptcy and the condition of the financial affairs of the debtor.A business that has many assets would be more likely to be able to pay a creditor something on every dollar as opposed to a consumer who has a car payment and mortgaged house but no cash saved.
The 341(a) meeting is a court meeting where the debtor must show evidence of financial affairs.If it is a Chapter 7 meeting, the court will probably appoint a trustee or create a creditors committee. This meeting is your chance as a creditor to ask questions and get clarification from the debtor on financial matters.
Making Your Claim Known
The bankruptcy attorney in Tyler, TX can assist a creditor in a number of ways.
>> Filing a proof of claim which documents the amount owed the creditor
>> Reviewing the trustee recommended distribution of assets among creditor
>> Filing responses with the trustee as necessary
>> Consulting with the bankruptcy trustee on behalf of the creditor
>> Filing objections to a Plan of Reorganization if required
>> Obtaining and reviewing all court documents related to the bankruptcy
>> Keeping track of the status of the case
Since a debtor is attempting to get debts discharged,it's important for the creditor to have a bankruptcy attorney in Tyler, TX keeping track of the bankruptcy proceedings, claims, processes,documents and filings.Some cases can get very complicated and only an attorney is fully qualified to understand the legal ramifications of any actions.
Protecting Creditor Interests
From the creditor's viewpoint,it may seem quite unfair that someone is able to get a creditor's debt discharged.People assume loans in good faith, but circumstances change making it difficult to meet financial obligations.Creditors will sometimes end up losing their money because bankrupt debtors either can't pay at all or can only pay a few cents on the dollar once assets are liquidated.
Another reason a creditor should be represented by a bankruptcy attorney in Tyler, TX is simply because the attorney can help keep events in perspective.