Creditor Rights is a generic terms for the tool-box of rights that any creditor has to collect outstanding debt from the debtors that owe the creditor money. This Creditors Rights tool box is available whether in a bankruptcy or non-bankruptcy context.
Creditors Rights Protect Creditors When Debts Become Hard to Collect
If one of your debtors declares bankruptcy, or is not in bankruptcy but in default in payment and not responding to your collection efforts, it is important for you to learn more about your rights as a creditor and what you must do to give yourself the best opportunity to collect your debt. And the tools at your disposal differ depending on whether in a bankruptcy or non-bankruptcy context. This is what a Creditors Rights attorney can help you sort out.
Exercising Creditor Rights is Time-Sensitive
The tool box of Creditors Rights is extensive, but exercising those rights is often time-sensitive. Generally, the longer the creditor waits to exercise their rights, the less likely it is that they will get paid. Remember that often the debtor is experiencing cash flow problems and juggling payments to all of its creditors, not just you. Usually the creditor that is the most proactive gets paid first from the limited pool of funds available for all creditors. An attorney specializing in Creditors Rights will recommend a debt collection strategy that is proactive because we understand the time sensitive nature of successful debt collection.
What Should Creditors Do When They Get Notice of Bankruptcy?
When a debtor files for bankruptcy, they obtain greater rights in the debt collection process. This is because creditors are generally prohibited from continuing their collection efforts for pre-bankruptcy debts without first obtaining Bankruptcy Court approval.
So, once a creditor receives a bankruptcy notice, the entire debt collection landscape automatically changes. The bankrupt debtor has certain rights in bankruptcy that do not exist outside of bankruptcy, but creditors have certain rights in bankruptcy as well.
Time is still of the essence! A creditor’s exercise of its rights in bankruptcy is time sensitive, often driven by deadlines imposed by the Bankruptcy Court. Missing certain Bankruptcy Court deadlines may result in a creditor inadvertently waiving its claim, even if there are funds in the bankruptcy estate to pay creditors. If you receive a Notice of Bankruptcy, you should immediately contact an attorney knowledgeable in creditors rights for an analysis of your claim and to discuss the best course of action based your facts.
Poniatowski Leding Parikh is a Leading Creditors Rights Law Firm in California
If you need a Creditors Rights attorney, contact Poniatowski Leding Parikh Law Corporation at www.ponlaw.com, whose senior partner Mark D. Poniatowski has been selected by SuperLawyers as a top Creditors Rights attorney in the San Francisco Bay Area, with offices in Oakland, Pleasanton, Castro Valley, and Los Angeles.