Bankruptcy Law

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Creditor Related Questions

Do you want to know where to obtain information on creditors in a bankruptcy discharge? Or, what happens when a creditor files proof of claim? Creditors are the people or institutions who lend money to the debtors, usually at an interest or any other valid terms agreeable to both parties concerned. When debtors are unable to pay or need to file for bankruptcy, creditors can suffer a loss or face other issues. However, they do have rights and stakes on the debtor based on the legal terms and conditions they have entered into. To understand more about creditors, verified bankruptcy law Experts online can be of assistance.

Read below a few questions about creditors answered by Experts online.

When a Chapter 7 bankruptcy is discharged, is there an official list of debts to include and a confirmation list of debts discharged?

One of the best ways to determine which creditors are affected is to examine the creditor’s list which is the last document in the initial filing. Some jurisdictions may provide this document a separate docket entry referred to as the ‘creditor matrix’ or ‘matrix.’ Another manner to understand would be to review the schedules attached to the petition and review each listed creditor. Most commonly, the creditors in question will be mentioned in ‘schedule F.’

After filing for bankruptcy, what can be done about a recent payday loan payment received from a creditor?

Assuming that the payday loan is not a scam and is legitimate, first check whether these creditors are listed on the bankruptcy creditor list. If they are, it is not possible from them to sue for the complete amount. They have the right to demand what the bankruptcy court has mandated that they should be given. If these creditors are not accounted for on the bankruptcy creditor list, they can file a suit only if they are within the statute of limitations. If so, they can sue in four years of the debt coming due. In such a scenario, the debtor should try and negotiate a payment plan or a suitable lump sum which less than what he/she owes.

What can a creditor do to recover the balance payment from the purchaser who has filed Chapter 13 bankruptcy?

First, the creditor needs to check whether they are named in the bankruptcy estate. Being named in the estate would give the person the rights of a creditor and make them secured. Such creditors have rights under the bankruptcy proceeding and typically, in a Chapter 13 proceeding, there is a possibility for the court to reinstate the mortgage and order that the debtor to make up for delayed or delinquent payments over a period of time.

What occurs when a creditor files a proof of claim?

A creditor’s filing of a proof of claim does not require a hearing with the bankruptcy judge, unless the debtor challenges such a claim. The debtor can object to the claim with valid reason and then allow the judge to decide if it is feasible and dischargeable as a result. To do so, one needs assistance from a bankruptcy attorney as they can handle this seamlessly. If the claim is unsubstantiated, the court has the right to deny the claim and it will be discharged along with the other claims, once bankruptcy proceedings are complete.

Is income from a retirement fund exempt in a judgment of a credit card suit?

If the retirement fund is a 401K, IRA or a pension fund of a person younger than 59 years, the fund is exempt to be paid off to a creditor. A creditor can only execute against or go after assets in the name which credit was issued to. If the debts are individual and not joint, the creditor can seize only assets of that individual. To safeguard’s one’s right, filing for bankruptcy is an option to be considered.

In New York, what is the duration of a bankruptcy process?

The bankruptcy process in New York can be as short as four months, depending on whether it is a simple bankruptcy case. If it is not a simple case, instead has many objections to automatic stays, creditor claims, and challenges it can take longer approximately 12 months or more. It also depends on how many creditors are present and how much they litigate the matter.

In Utah, what are the repossession and redemption laws?

Case Details: Debtor's car was repossessed in the night before the debtor could file bankruptcy Chapter 13.

After a default, the creditor can dispose of the collateral in a commercially reasonable manner either by public or private sale. Any time prior to the disposition of the collateral, it is possible for the debtor to redeem it by tendering full payment of the obligation owed as well reasonable expenses incurred by the creditor. The creditor is required to provide reasonable notice to the debtor of the time and place of sale of the asset to allow the debtor to get sufficient time to plan and retain the asset. In Utah particularly, a creditor must inform the debtor of any surplus or additional amount gained. Similarly, the debtor is liable for any deficiency. However, under the Uniform Consumer Credit Code, a creditor may not seek a deficiency judgment if they repossess a car whose value is $3,000 or less. Lastly, an automatic stay through filing a bankruptcy is not valid to stop possession of a collateral which has already been seized.

As seen above, creditors can be of various types based on which their investment or loan amount can be retrieved. Collaterals also play an important role for a creditor who could be facing an impending bad debt. Whatever may be the scenario, both parties are required to work under the purview of certain rules, regulations and restrictions. To get important information and opinions as well as solutions and alternatives, legal Experts online can be useful. To ask your particular question and get customized answers, contact verified legal Experts, quickly and economically from the comfort of your home. 

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