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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

They eased my troubled mind

“They eased my troubled mind” P.A. My experience with both Diane Drain & Jay have eased my troubled mind! They both were Extra Helpful during this trying time!

thank you for helping me keep my car and some self respect

"Thank you for helping me keep my car and some self respect." G. Diane – thank you for helping me keep my car and some self respect. This was so hard to do. I did feel a sense of relief once I saw you and we actually were [...]

I can not imagine being treated with more professionalism

"I can not imagine being treated with more professionalism!" S. I want to express my appreciation to you and your assistant Jay for all your hard work. I can not imagine being treated with more professionalism and respect that you did. Going to the entire bankruptcy process [...]

She was very pleasant, knowledgeable and informative

"She was very pleasant, knowledgeable and informative" P.K. I live in Las Vegas and had a legal matter involving bankruptcy. My attorney in Las Vegas informed me that I would need an attorney from Arizona since the claim was filed in Arizona. I knew no one so [...]

Super Kind!

“Super Kind!” Anon She was very professional and stayed in her lane as she knew I had already hired another Attorney. She was kind and made me feel better about my choice that I made. She gave me sound advice, and she didn’t have to do that. [...]

Overall grade for help received from Diane and her staff – 110%

"Overall grade for help received from Diane and her staff – 110%" N. Overall grade for help received from Diane and her staff – 110%. Now I can breath and it is thanks to Diane.

What a huge relief to be released from the financial burden

“If you follow everything she says the process is easy and stress free.” J.E. Don’t hesitate, call Diane! Diane has been a huge lifesaver! I reached out to Diane through a Google search when the existing law firm I had started with wasn’t communicating with me. She [...]

Just wanted to share our story so you can share with others that come in

“Just wanted to share our story so you can share with others that come in” K.T. Diane I just wanted to give you an update on us. We filed bk with you representing us about 7 years ago now. Just wanted you to know we are doing [...]

I will be forever grateful to Diane and Jay for giving us our life back!

I will be forever grateful to Diane and Jay for giving us our life back! P.E. I cannot adequately describe how much we appreciate the help Diane and Jay provided us. We were in serious financial trouble, which created an incredible amount of stress that was beginning [...]

I am glad that Diane was the person to lead me through it

"I am glad that Diane was the person to lead me through it." T. I wish that I did not have to file for bankruptcy protection; nevertheless, having to go through the process I am glad that Diane was the person to lead me through it. Diane definitely [...]

I will never forget how much they helped me get my life back.

I will never forget how much they helped me get my life back. R.A.   As you can imagine, filing for bankruptcy can be stressful. Finding the right attorney can add to this stress. Working with Diane and Jay to guide me through this difficult process was the [...]

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 [...]

She’s the best!

"She's the best!" P.I. Diane helped me file a bankruptcy. I messed up and continued paying on one credit card. It was because of Diane's expert help that I was refunded my full amount of $1200.

This is your bankruptcy; you get out of it what you put in

"This is your bankruptcy; you get out of it what you put in" K.B. Diane Drain, and her amazing teammate, Jay were two of the most helpful, caring individuals I have met in a long, long time. The process of bankruptcy is daunting, having a guiding hand [...]

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 [...]

I felt completely at ease

" I felt completely at ease." D.A. I was greatly relieved to find an attorney that I felt completely at ease with, confident in her professionalism and her staff; and to find someone I felt I could trust completely.

Highly recommend Diane Drain!

“Highly recommend Diane Drain!” J.P. I could not have made a better choice than Diane to help me with my bankruptcy case. During what is a very difficult and stressful time, she made things so easy to understand and the process could not have gone smoother. If [...]

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 [...]

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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