One of the main confusions that those who are considering filing for bankruptcy may suffer from is in regards to what rights creditors have in the bankruptcy process. Confusion on this issue may cause individuals to underestimate the relief that bankruptcy can bring. This can lead to people avoiding the most direct and effective form of debt relief available.
At Boyd Contreras LLP, our bankruptcy attorneys in San Diego & Orange County have a deep understanding of the Bankruptcy Code and can help you understand not only the benefits that filing for bankruptcy can bring, but also, the full process and all of your options. Helping our clients understand what rights a creditor has can be an integral component in making the decision to file bankruptcy or not, as well as other critical decisions such as reaffirming any debts.
What Are a Creditor's Rights in Bankruptcy?
Secured creditors, those who issued a loan that was secured by property such as a home or automobile, have the right to recover property if you fail to maintain payments. Filing for bankruptcy does not diminish that right. The automatic stay does put a temporary halt to collection activities, but creditors may simply wait until you are discharged or they may ask the court for relief from the automatic stay.
Given the short duration of the typical Chapter 7 bankruptcy case most creditors will simply wait until you are discharged. With the five-year repayment period of Chapter 13 bankruptcy, creditors will rarely wait for discharge to occur.
In certain situations, creditors may attend a 341 hearing to ask about the nature and location of assets. Typically, this only occurs where creditors believe that a debtor is hiding assets.
Contact Our San Diego Personal Debt Relief Lawyers at Boyd Contreras LLP
Our attorneys help clients through out Southern California including these cities and counties:
- San Diego County
- Chula Vista
- El Cajon
- La Mesa
- La Jolla
- Orange County
- Irvine
- Santa Ana
- Newport Beach
- Laguna Beach
- And More
If you are facing the challenge of overwhelming debt, you need not face it alone. Our skilled bankruptcy lawyers can help you fully understand the process. We will dedicate ourselves to understanding and achieving your goals. That is our promise. For a free initial consultation with one of our lawyers, call 619-378-4033 to reach our San Diego or Irvine office or simply contact us online.
Pursuant to 11 U.S.C. section 528(a)(4) of the bankruptcy code, we are required to state: we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Related Content: San Diego Bankruptcy Lawyers | Chapter 13 Bankruptcy Attorney
