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Law Off of D.L. Drain P.A., Arizona Bankruptcy Lawyer | "Helping You Get Your Life Back on Track"
Law Off of D.L. Drain P.A., Arizona Bankruptcy Lawyer | "Helping You Get Your Life Back on Track"

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

Diane has a very calm confidence because she knows the laws inside and out

Diane has a very calm confidence because she knows the laws inside and out. L.D. Diane is very smart, patient, kind and sincere. I am a better person for knowing her. I was so nervous to call and start the process but Diane made everything seem easy. [...]

They are experienced and professional

"They are experienced and professional!" M & J Diane and Jay helped my wife and I get past a difficult chapter in our lives. They are experienced and professional. They answered all our questions and gave us excellent advice. We followed there directions from start to finish and the [...]

I wish all attorneys treated their clients the way that Ms. Drain and Jay treated me

"I wish all attorneys treated their clients the way that Ms. Drain and Jay treated me." Anonymous I asked Ms. Drain to help me with a bankruptcy. When I first called I was scared, afraid to answer my phone and worried that my wages were about to be [...]

Diane cleaned up serious mistakes made by another attorney

Diane cleaned up serious mistakes made by another attorney. J.D. Diane helped me straighten out my case, after an attorney from a different law firm, made serious mistakes in my filing that could have been extremely detrimental. If not for her very professional guidance, constant communication and follow-up, while [...]

An expert who gets the job done!

"An expert who gets the job done!" B.R. An expert who gets the job done! We hired Diane Drain to handle a complicated eviction / Lift of Stay on a tenant who filed bankruptcy. Not only did she answer my multitude of questions in a timely manner, [...]

They are compassionate truth-tellers who educate and empower

They are compassionate truth-tellers who educate and empower. M.R. Diane and Jay are caring and competent professionals who have helped so many people through difficult legal processes. They are compassionate truth-tellers who educate and empower as much as they provide legal assistance. Highly recommend. [...]

Filing for bankruptcy can be a stressful life event

“Filing for bankruptcy can be a stressful life event” R.A. Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people [...]

Diane shows compassion and understanding to her clients.

“Diane shows compassion and understanding to her clients.” M.W. Diane provides educated and honest information throughout the entire process. She shows compassion and understanding to her clients. She was not my first attorney but took my case on in very short order. She cleaned up all of [...]

Diane had kind words to comfort despite our horrible circumstances

“Give her a call if you don't know where to turn.... ” B.G. Diane was an exceptionally nice lady and very courteous to my wife and I as we requested help. She had kind words to comfort despite our horrible circumstances. She gave us great advice and [...]

Diane and Jay were very patient with us

"Diane and Jay were very patient with us" N & J Diane and Jay were very patient with us in explaining every important detail involved in our case which helped ease the anxiety that sometimes came when we felt unsure about certain questions, Thank you. [...]

Made the Bankruptcy process very understandable and helpful

“Made the Bankruptcy process very understandable and helpful” P.H. Diane’s expertise and solid experience and instructions made my entire Bankruptcy process very understandable and helpful! Her guidelines helped tremendously. The entire process would have daunting without her professional help. Anytime I need any professional legal help in [...]

I came to Diane cause her reviews stuck out the most. I WAS NOT DISAPPOINTED!!!

“I came to Diane cause her reviews stuck out the most. I WAS NOT DISAPPOINTED!!!” S.C. I came to Diane cause her reviews stuck out the most. I WAS NOT DISAPPOINTED!!! If you're serious about filing for bankruptcy than I suggest you go with Diane Drain!!! From [...]

A Fresh Start Feels So Good

A fresh start feels so good! I am now looking forward to purchasing a home in the near future. L.T. I had the wonderful experience of working with Diane Drain to get me through the bankruptcy process. Diane was a Law Professor for many years. She knows [...]

Diane’s steady hand, expertise and cool head, got us on the right track

“Diane’s steady hand, expertise and cool head, got us on the right track.”  P.R. Our lives were spinning out of control. We were trying all kinds of “quick fix” gimmicks to get our finances in order following employment challenges and being small business [...]

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 [...]

Diane’s advice was free, generous and to the point

“Diane’s advice was free, generous and to the point” S.I. I have called Diane seeking help with a Real Estate issue. Even though my issue does not fall into her area of focus, she kindly gave advice and recommended someone else. I wish I could hire her, [...]

Our situation was complicated by having moved here recently from another state, but that posed no problem for them

“Our situation was complicated by having moved here recently from another state, but that posed no problem for them” R.B. Diane and Jay did a great job for us. Diane is a very knowledgeable, experienced, and well-connected bankruptcy lawyer. She instructed us well, was invaluable in getting [...]

Diane and Jay did an excellent job

"Diane and Jay did an excellent job" S.K. Diane and Jay did an excellent job and my wife and I could not be happier. She was able to help us keep the assets that were important to our family and answered our questions along the way. Very [...]

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 [...]

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