AvvoGoogle Business

Bankruptcy Help For Creditors

I only recommend top creditor attorneys

Bankruptcy Help For CreditorsSite Producer2022-08-16T10:32:21-07:00

Bankruptcy For Creditors

After years of helping both creditors and debtors through bankruptcy, I’ve decided to focus solely on helping debtors. But I’m happy to give you names of excellent creditor lawyers.

Consider bankruptcy an area of law that holds our lives together and keeps our economy flourishing and healthy. Allow bankruptcy law the credit it deserves. It enables individuals and corporations to restart their lives. Allows them to pay their taxes, buy food and other requirements, or pay their employees so that they can purchase food and other essentials.

All of this and more is why I am ecstatic to be able to assist debtors in understanding bankruptcy.

Diane L. Drain

Creditors Bankruptcy FAQs

Do your homework.Diane Drain2022-09-21T09:07:10-07:00

Examine all loan and security paperwork to confirm that they are comprehensive and that all necessary measures to perfect liens on any collateral supporting the obligation have been taken. If not, never take any action without first obtaining an order from the bankruptcy court.   This is a critical phase that determines the strength of a secured creditor’s position in the case. Section 506 explains how a secured claim’s value is determined. Although correcting inadequacies after the filing of the petition may be a violation of the automatic stay, it is critical to be aware of any issues. The secured creditor may have a period of time to perfect the creditor’s lien when the debtor gets possession of property or a transfer is made under Section 547(c)(3) and (e).

What is the meaning of a reaffirmation agreement?Diane Drain2022-09-21T09:20:22-07:00

The secured creditor or landlord may ask the debtor to sign a new contract called a “reaffirmation agreement” or “assumption of lease” after the bankruptcy is filed but before the discharge is issued. This new contract has the same terms as the original, and Sections 524(c) and (k) describe the paperwork, disclosures, and procedures that the creditor must follow in order to get this new contract. It must be approved by the Court in order for the debtor to be bound by it. Because 524(k)(5)(B) requires the debtor’s attorney to certify that the debtor will be able to make the payments, it’s likely that no debtor’s counsel will sign the reaffirmation agreement. This is not only absurd, but it also begs the question of how anyone could certify someone’s ability to pay a future debt.

Below is a link to a video of Bankruptcy Judge Eileen W. Hollowell, filmed explaining the reaffirmation process.

http://www.azb.uscourts.gov/video-discussion-reaffirmation

Is it possible for me to object to my debt being discharged?Diane Drain2022-09-21T09:11:22-07:00

Look for a reason to object to a debt being discharged under Sections 523 or 727. Creditors have only 60 days from the date of the initial creditors’ meeting to initiate a complaint to have their debts declared non-dischargeable due to a misleading financial statement. A creditor’s chances of winning a non-dischargeable lawsuit are slim, and the creditor will almost always be denied attorney’s fees and expenses for filing the action.

What is the purpose of a creditors’ meeting?Diane Drain2025-10-24T14:46:55-07:00

Creditors will be notified of an initial meeting of creditors (Section 341, Meeting of Creditors) to be held by the bankruptcy trustee shortly after a bankruptcy is filed. You are welcome to attend the Section 341, Creditors’ Meeting, but it is not compulsory. This meeting allows the creditor to ask the debtor a few questions about the creditor’s claim, collateral, other claims against the debtor, the debtor’s plans for its bankruptcy case, and other financial matters. Time for the 341 is short, so it is not appropriate to interrogate the Debtor at this time (check out 2004 examinations). This is an excellent moment to inform the Trustee (the person in charge of the meeting) of any inconsistencies detected in the schedules by the creditor. Make sure you can back up any claims you make. The meeting might be attended by either the creditor or its counsel.

What is the procedure for a creditor to file a motion to lift the automatic stay?Diane Drain2024-03-15T06:39:54-07:00

An order granting a Motion for Relief from the Automatic Stay, often known as a “stay order,” is obtained by filing a Motion, Notice, and Certificate of Mailing with the court, as well as notifying the appropriate parties. The Debtor is given the opportunity to respond. A hearing will be conducted if a response is filed. An Order, Certificate of No Objection, must be submitted with the Court if no response is filed. The Order will most likely be signed by the Court. The creditor is free to proceed with the action requested in the Motion and granted in the Order once the signed order is received.

Creditors Rights in Arizona

The legal term “Creditor’s Rights” refers to the area of practice for lawyers that concentrates on creditors’ rights and obligations.  The Bankruptcy Code has numerous provisions to assist creditors and protect their interests if a bankruptcy petition is filed.

Creditors Rights in Bankruptcy

Attorneys who specialize in creditors rights will typically do one or more of the following:

  • To collect consumer debts, file lawsuits and employ other legal means (i.e. debts owed by individuals).
  • To collect commercial debts, file lawsuits and utilize other legal collection procedures (i.e. debts owed by businesses).
  • In a bankruptcy procedure, represent the interests of a creditor.
  • If a buyer defaults on a payment, conduct a foreclosure or trustee’s sale of the property.
  • If the buyer defaults on payment, the secured items (such as autos) can be recovered.
  • As needed, garnish paychecks or bank accounts.
  • Non-exempt property can be sold at a sheriff’s sale.
  • Other contractual and legal remedies may be pursued.

Attorneys may charge an hourly rate or a flat fee. Fees and charges are usually determined by:

  • The bankruptcy chapter (Chapters 7, 11, or 13);
  • What you wish to achieve;
  • The extent to which the borrower will oppose your goals.

Clients from all across Arizona have put their trust in us

She is like your favorite professor who just happens to be a spitfire attorney and advocate for understanding, support, kindness and knowledge.

“She is like your favorite professor who just happens to be a spitfire attorney and advocate for understanding, support, kindness and knowledge.” N.B. I can't describe in a short review how much Diane and her team changed my life. I'm not being dramatic or cheesey. I had [...]

You were brilliant!

"You were brilliant!!" G. I will never forget what you’ve done for me. You were brilliant!Thank you.

I really felt I could trust you

"I really felt I could trust you!" Excess Sales Proceeds, P. EXCESS SALE PROCEEDS: P. and I would like to thank you both, especially you Jay, for all the work you did in obtaining our Excess Funds check today. You somehow managed to get this done between January [...]

We were put at ease throughout the process

"We were put at ease throughout the process" S.L. Diane and Jay made sure we were put at ease throughout the process.

There were no demons or dragons. It my constitutional right to be free of debt

There were no demons or dragons. It my constitutional right to be free of debt. V.M. I first met Diane in 2009. I was losing control of my finances and therefore my whole life seemed a day to day mix of anxiety and fear. I landed on [...]

She knows the ins and outs

"She knows the ins and outs" M.D. I’ve been in the legal field for over 25 years (as a legal secretary and paralegal) and Diane is a top notch attorney. She knows the ins and outs of this area of law and does a really great job of explaining [...]

After paying all my bills for 49 years and barely treading water, I was laid off and found myself with nothing

After paying all my bills for 49 years and barely treading water, I was laid off and found myself with nothing. D.W. Like many people, I was very apprehensive about filing bankruptcy. At 65 years old, I always thought- That would never be me! But after paying all my [...]

ow I can finally breathe easy and deep again

"I can finally breathe easy and deep again." J. Thank you so so much for all your help and understanding. Especially in the beginning when I had so many questions and you were so very patient with me. I felt that you were very upfront about everything, letting [...]

Diane Drain and her staff have guided us through the rough terrain of a bankruptcy

"Diane Drain and her staff have guided us through the rough terrain of a bankruptcy" Anonymous Diane Drain and her staff have guided us through the rough terrain of a bankruptcy. From the beginning of this process,to an end that is quite near, Ms. Drain has provided [...]

Nothing short of excellent

"Nothing short of excellent" A.M. Diane – you are nothing short of excellent! From the first hello, how can I help you- to congratulations, your discharge has been entered, you were superb! Patient, understanding, compassionate, kind, considerate, knowledgeable, highly-skilled expert are a few words that come to [...]

Diane and Jay were amazing!

“Amazing Experience” E.L. Diane and Jay were amazing! They made everything so easy and answered all of my questions thoroughly. I appreciate all the help and guidance I received throughout my filing experience. I would highly recommend Diane to anyone looking into bankruptcy. [...]

Bankruptcy Changed Our Lives for the Better.

"I'm forever grateful for her help during such a difficult time, and all she did to change our lives for the better." M.M. Years after declaring bankruptcy, I can reflect on how far my wife and I have come financially. I remember the shame and fear that [...]

Diane made this whole process a lot less scary

"Diane made this whole process a lot less scary" L.S. Diane made this whole process a lot less scary and answered all my questions in a way that made me feel like this really wasn’t the end of the world for me. I would highly recommend her [...]

Diane Drain is really knowledgeable.

"Diane Drain is really knowledgeable." B.W. Diane Drain is really knowledgeable. She helped us tremendously in our bankruptcy case. We are thankful for all she did for us!

Diane was patient, thorough, sympathetic, quick with responses and obviously knew what she was doing.

“Diane was patient, thorough, sympathetic, quick with responses and obviously knew what she was doing. ” D.S. I've never had to consult a bankruptcy attorney before but recently had to do just that on behalf of a family member. Although we decided to not go through with [...]

very compassionate and explains everything

"very compassionate and explains everything" J & B.S. It was such a pleasure working with Diane through this difficult process. Diane is a wonderful attorney who not only knows the bankruptcy law inside and out, but is very compassionate and explains everything in detail through each step [...]

We are very happy we were referred to Diane for assistance

"We are very happy we were referred to Diane for assistance." S.G. Diane helped my husband and me get past a difficult chapter in our lives. She answered all our questions and gave us excellent advice. We followed her directions from start to finish and the process went [...]

Diane understands that a simple mistake could cost you in many ways

Diane understands that a simple mistake could cost you in many ways. J.D. After choosing to file bankruptcy, I selected another attorney at first, which was a huge mistake. He offered payment plans which seemed to be a good choice at the time. However, his lack of [...]

Why is a Creditor Suing Me After I Filed Bankruptcy – You Did Not Follow the Law.

What are the Basic Bankruptcy Principles? Bankruptcy is a legal process that helps people and businesses overwhelmed by debt get a financial ‘start fresh’. The [...]

The Arizona Statute of Limitations Applicable to Collection Lawsuits and Non-Judicial Trustee’s Foreclosure Sales of Real Property,

The Arizona Statute of Limitations Applicable to Collection Lawsuits and Non-Judicial Trustee’s Foreclosure Sales of Real Property, article by Larry O. Folks, Folks Hess, [...]

Enforcement of Arizona Money Judgment Against Debtor’s Residence “Homestead” Property

Analysis of Enforcement of Money Judgments in Arizona Against a Judgment Debtor’s Residence / “Homestead” Property By Larry O. Folks (10/26/20) (reprinted with permission [...]

Are you or a loved one experiencing financial hardship?

Help Yourself or Someone You Love
Share your info (or a loved one’s) below to receive clear, actionable steps today to begin the FREE Consultation process. Feel free to ask us anything along the way.

This field is for validation purposes and should be left unchanged.
Name(Required)
Consent to receive email(Required)

Information submitted through this form is used solely to respond to your inquiry. We do not sell, share, or use your information for marketing purposes. Submitting this form does not create an attorney-client relationship or mean that we represent you. Please do not include confidential or time-sensitive information.

Go to Top