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
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).
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.
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.
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 if short, so I t 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.
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
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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 [...]
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helps to ensure that your assets are protected
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Diane and Jay are wonderful people that really went to great lengths to help us out
“Diane and Jay are wonderful people that really went to great lengths to help us out” J & T.M. Diane and Jay are wonderful people that really went to great lengths to help us out and manage our bankruptcy in order the give us the best chance [...]
Diane was patient in providing clear direction and advice
Diane was patient in providing clear direction and advice. A.T. Mrs. Drain made a very stressful time in my life easier to manage by providing detailed direction through my bankruptcy process. From day one I felt comfortable with Dian and Jay in addition to feeling confident with [...]
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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 [...]
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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. [...]
whole process went very smoothly from beginning to end
"whole process went very smoothly from beginning to end." Anonytmous We filed for chapter 7 bankruptcy and the whole process went very smoothly from beginning to end. This was thanks to Ms. Drain who was caring, professional and committed to making sure that we fully understood the bankruptcy [...]
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she made things so easy to understand
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Bankruptcy and New Arizona Homestead Statutes
Bankruptcy Issues After January 1, 2022 Changes in Arizona Homestead Statutes Reprint from Gary Stickell’s website: January 19, 2022 The [...]
- The Arizona Statute of Limitations Applicable to Collection Lawsuits and Non-Judicial Trustee’s Foreclosure Sales of Real Property, Gallery
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Collection companies & Debt buyers, Creditors Rights, Debt Relief Agencies, Foreclosure, Trustee Sale and Foreclosure Videos
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 [...]
Supreme Court – Statute of Limitations under FDCPA
Holding: Statute of limitations begins to run when the alleged FDCPA violation occurs, not when the violation is discovered. […]