Allen Law Firm
Attorney at Law serving Dallas, Plano, Allen, McKinney, Frisco and Collin County
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Bankruptcy

returning more to creditors in bankrupty

When someone indebted to you files for bankruptcy, you still have legal options.  

 

PROOF OF CLAIM

Creditors must take affirmative action when a debtor files bankruptcy.  When a bankruptcy is filed by a debtor, a bar date is usually set to determine the last day that proof of claim can be filed.  A proof of claim is an affirmative statement of the amount and basis for the money owed a creditor against a bankrupt debtor.  If a proof of claim is not filed then the Creditor often get nothing from the bankruptcy filer.  Filing a proof of claim secures your right to payment of that debt within the bankruptcy rules (does not guarantee full or even partial payment of the debt).  The rules for how much a debtor has to pay to secured and unsecured creditors differ between a Chapter 7, 13, and 11 case. Also, the amount of total assets in the “pot” will play a significant role in whether a creditor will receive payment.  We can help you analyze a bankruptcy case and determine what you are entitled to receive in the case.  

 

TRANSFER OF CLAIM

A transfer of claim occurs when a creditor in a bankruptcy case sells or transfers its right to payment to another creditor.  We can help you structure and file a transfer of claim.  

 

MOTION FOR RELIEF

When a person files bankruptcy that person’s property is protected under Section 362 of the Bankruptcy Code.  A creditor cannot pursue collection efforts and cannot try to take the bankrupt person’s assets without court permission.  The protection is removed at the end of the case when the bankruptcy case is dismissed, closed, or discharged.  The protection can also be removed if a creditor files a Motion for Relief (motion requesting relief from the bankruptcy court protection).  The grounds for filing the motion and the likelihood of a court permitting such protection removal vary depending on the type of debt, the Chapter of the bankruptcy case, and the Judge.  We can help you determine if a Motion for Relief is proper in your case. 

 

MOTION TO DISMISS

If the debtor fails to comply with the bankruptcy rules then a Motion to Dismiss the bankruptcy case may be granted.  Any party in interest can file a Motion to Dismiss the case and many reasons to dismiss exist under the Bankruptcy Code and case law.  We can help determine if you have proper grounds for a Motion to Dismiss in a bankruptcy case.  

 

OTHER CREDITOR ISSUES

Creditors often find themselves struggling to understand the bankruptcy process.  Creditors must be prepared to deal with creditor committees, bar dates, 341 hearings, cash collateral issues, adversaries, responses to motions and notices (Notice of Final Cure, Trustee Recommendations, Discharge motions, Claim Objections), and debtors that conveniently forget to schedule a debt.  We can help you identify your rights and put together a plan of action. 

 
 

Contact us today if someone indebted to you declares bankruptcy.