In many cases a creditor receives a notice of bankruptcy and they are of the opinion that they have little in the way of rights or alternatives but to write off the debt, this is not always the case.
As not all claims are treated in the same manner it is often in the best interest of the creditor to engage the professional services of business bankruptcy attorneys in Houston TX, creditors with secured debt have certain entitlements which include:
* A share of any monies from the bankruptcy estate in accordance with the priority of the claim
* The right to be heard in court with respect to the plan of the debtor or the planned liquidation of nonexempt assets
* The right to challenge the right to discharge
In any bankruptcy, personal or business, secured creditors are far better off than those who hold unsecured debt. A secured creditor holds a lien against the property; it is the property in question that is the collateral. The rights of a secured creditor can be supported a mortgage on real property such as a building, a security agreement on property such as an automobile as well as a judgment lien.
As a creditor what steps should you take?
Once the debtor has filed for bankruptcy protection you must stop any collection actions that were taking place. During the proceedings the debtor is protected by an automatic stay. Your business bankruptcy attorneys in Houston TX will file a claim on your behalf with the court. Your claim will be supported with copies of all supporting documents.
Secured creditors are treated differently depending on whether the debtor has filed for Chapter 7 or Chapter 13 bankruptcy. In both cases the property that was used to secure the debt must be surrendered or arrangements must be made to satisfy the debt. Contact the business bankruptcy attorneys in Houston, TX at the Taylor Law Group for a consultation. Like them on Google +
