What Rights Do Creditors Have?

When a debtor files a bankruptcy action, they will provide a list of their creditors and debts that they are seeking to discharge. Notice must be provided to the creditors in order for the debt to be included in the relief. Creditors in a bankruptcy have certain rights, which they may raise if they follow certain procedures. The bankruptcy attorneys in Hopewell VA from Canfield Wells can discuss with you a creditors’ rights and how they apply.
What are some rights that creditors have in a bankruptcy?
Creditors who have received proper notice in a bankruptcy may have a variety of rights. These may include:
- Filing a claim to seek reimbursement from the bankruptcy estate
- Seeking leave from the stay of collection efforts
- Exemption from the bankruptcy discharge
- The right to receive notice and participate in the case
- Priority over other creditors in certain circumstances
Because a bankruptcy typically involves multiple creditors, the creditors often will be competing with each other to receive payment from the bankruptcy estate. A Richmond VA bankruptcy lawyer can help you understand which creditors have priority over others.
In general, creditors who have a security interest in certain property will have higher priority than other creditors who lack a security agreement. Also, creditors who have recorded their claims first, will have priority over creditors who failed to record their interest or those who recorded later.
How can a Richmond VA bankruptcy lawyer help?
Bankruptcy law is complex and involves complexities of procedure and the Bankruptcy Code. To understand your rights and to properly raise them, you should confer with experienced bankruptcy attorneys in Hopewell VA.
If you need assistance with bankruptcy issues, then contact Canfield Wells to learn more about your options and what to expect. We can provide legal advice and representation to assist you in your case.