As a creditor caught up in a bankruptcy, you have two options. You can throw in the towel and chalk it up to the cost of doing business or you can hire a Henderson Nevada bankruptcy lawyer and see what can be done to preserve the claim on the debt that you are owed.
As a creditor there are number of actions that you can take:
Non-dischargeable debt:
The objective of a debtor in any case involving bankruptcy is to discharge as much of his or her debt as possible. It is possible for a creditor in the action to seek a ruling from the court to keep the debt owned him from being among those discharged. The creditor has only 60 days to file a complaint after the date set for the creditors meeting. To be successful with this action the debt has to fall within certain categories:
- The debtor must have obtained the credit through fraud
- Assets were embezzled by the debtor or there was a breach in fiduciary duty
- The debtor willfully or maliciously injured the creditor or the creditor’s property
Object to discharge:
Any objection to discharge in any case of Chapter 7 bankruptcy can only be filed against an individual person. In the event, the creditor wins with his objection the debtor will not be granted a discharge of the debts owed when the petition for bankruptcy was made. A Henderson Nevada bankruptcy lawyer will point to a number of reasons for raising an objection to a discharge of debt:
- Failure to keep adequate financial records and produce them on demand
- Failure to explain the loss of an asset
- A false statement made in the bankruptcy paperwork
- Failure to follow a court order
- Fraudulent transfer, destruction or concealment of the assets
Relief from automatic stay:
When an individual files for bankruptcy a stay becomes automatically effective, there is no need for an order from the court. Similar to any injunction the stay puts a stop to most actions that can be taken legally against the debtor although there are some exceptions. If the debtor was a party in a lawsuit which was about ready to be tried or if an eviction or foreclosure order was about to served a creditor may have grounds to request relief from the stay order.
As a creditor in a bankruptcy case, it is important to handle issues that arise the moment the action starts.
If you are a creditor in a bankruptcy action, you have certain rights. To ensure these rights you will need a Henderson Nevada bankruptcy lawyer; you are invited to contact the Law Office of Hayes & Welsh.
