What Rights do Creditors Have Against me in Bankruptcy?

Once a debtor files for bankruptcy, a creditor must cease all attempts to collect the debt, including phone calls, letters and other means.  However, creditors do have certain rights in the proceeding.  In a Chapter 13, for example, creditors are entitled to a percentage of the allocation of the estate according to the priority of their claim. 

In addition, bankruptcy code requires that creditors are noticed of any activity in the case, allowing them to monitor the case and file objections or raise issues with the court if need be.  Most notably, creditors have the right to challenge the discharge of their debt.

Filing for bankruptcy can be a scary decision. It helps tremendously to have an attorney experienced in dealing with creditors advocating on your behalf.  Fears | Nachawati Law Firm has years of experience and is prepared for the challenges your case may present.