Protecting Creditor Rights In Bankruptcy Court
Marinstein & Marinstein, Esqs., PLLC, has protected the rights of creditors in bankruptcy proceedings for more than 60 years. We represent businesses, lenders, landlords and other creditors when a debtor files for bankruptcy.
A bankruptcy filing can limit normal collection activity and put an unpaid claim at risk. We help creditors understand their options, protect their financial interests and pursue available recovery. Whether your claim should be excepted from discharge or you face a preference dispute, our attorneys provide experienced and accessible representation.
Safeguard Your Interests When A Debtor Files For Bankruptcy
A bankruptcy filing generally triggers an automatic stay that stops most collection efforts. We can review your claim, determine what rights remain available and take action when needed.
We provide a range of services for national and international creditors, including:
- Filing proofs of claim
- Objecting to unfavorable bankruptcy plans
- Seeking to except qualifying claims from discharge
- Seeking relief from the automatic stay to continue foreclosures, replevin actions or repossessions
- Negotiating repayment plans and reaffirmations of debt
- Defending preference actions and other bankruptcy disputes
- Protecting the rights of secured creditors in collateral
With bankruptcy court approval, a creditor may sometimes obtain relief from the automatic stay and continue certain enforcement efforts. We can pursue that relief when the facts support it.
We also help creditors with collection matters outside bankruptcy. Learn more about our collection law services.
Take Action When Debtors Commit Bankruptcy Fraud
Not every debt can be discharged in bankruptcy. In some cases, fraud or other conduct may give a creditor grounds to challenge the discharge of a particular debt or object to a debtor’s discharge. Creditors must follow strict procedures and deadlines when bringing these challenges.
Possible concerns may include false financial statements, hidden assets, fraudulent transfers or other dishonest conduct related to the debt.
At Marinstein & Marinstein, Esqs., PLLC, we know how to review financial records and other evidence for signs of fraud. If the facts support further action, we can build a case to protect your claim and pursue the remedies available under bankruptcy law.
Frequently Asked Questions About Creditor Rights In Bankruptcy
Creditors often have questions about what happens after a debtor files for bankruptcy. The answers below address several common issues involving claims, recovery and creditor rights.
How can a creditor collect a debt if a borrower files for bankruptcy in New York?
Once a debtor files for bankruptcy, the automatic stay generally stops direct collection efforts. Creditors should not simply continue demanding payment.
Instead, a creditor may need to file a proof of claim, seek relief from the stay or take another step through the bankruptcy court. The right approach depends on the type of bankruptcy, the nature of the debt and whether the creditor holds collateral.
How and when do I file a Proof of Claim in a New York bankruptcy case?
A proof of claim tells the bankruptcy court how much the creditor believes it is owed and provides information about the claim. Creditors should review the bankruptcy notice for the filing deadline and follow the applicable court rules.
In many Chapter 7 cases, creditors do not need to file a claim unless the trustee finds assets that may be distributed. Chapter 11 cases follow different rules, and some scheduled claims may not require a separate proof of claim.
Can a creditor object to a debtor discharging their debt in bankruptcy?
Yes, in some cases. A creditor may have grounds to argue that a particular debt should not be discharged. Creditors may also object to a Chapter 7 debtor receiving a discharge when the law provides grounds to do so.
These challenges require court action and are subject to deadlines, so creditors should act promptly after receiving notice of the bankruptcy.
What should a creditor do if a bankruptcy trustee demands a clawback of past payments (Preference Action)?
A trustee may seek the return of certain payments made before bankruptcy as preferential transfers. A demand for repayment does not always mean the creditor must immediately return the full amount.
Creditors may have defenses based on how and when the payments occurred. We can review the payment history, contracts and business relationship and defend the creditor when grounds exist to challenge the demand.
What are the key differences between secured and unsecured creditor rights in Chapter 11 and Chapter 7 cases in New York?
A secured creditor generally has a lien or other interest in specific collateral. That security can provide added rights in bankruptcy, including the ability in some cases to seek relief from the automatic stay to protect or recover collateral.
An unsecured creditor generally does not have collateral securing the debt. Its recovery often depends on the assets available, the priority of the claim and the type of bankruptcy. In a Chapter 7 no-asset case, unsecured creditors may receive no distribution.
Chapter 11 often involves a plan for reorganizing and paying claims, while Chapter 7 focuses on liquidating available nonexempt assets. We help creditors understand where they stand and what steps may improve their position.
Contact Our Law Firm Today
Our skilled lawyers at Marinstein & Marinstein, provide personal service and a hands-on approach. We work closely with creditors to understand the debt, the bankruptcy case and the financial result they hope to achieve.
To schedule a free consultation with a creditors’ rights attorney, call 518-274-5034 or use our online form. We can help you take the legal action needed to protect your claim and your rights.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.