Creditors have rights in State Court as well as Bankruptcy Court and most importantly Creditors have deadlines to meet if they want those rights protected. Although each chapter of thebankruptcy code provides different types of rights and deadlines, it is important to discuss your rights as a Creditor with an attorney.
One of these rights is suing a Debtor for Fraud based on the extension of credit to the Debtor. Other rights also include questioning the Debtor at the Creditor’s Meeting or filing what is known as a Rule 2004 Motion in order to extensively depose the Debtor and demand certain documents. In some instances the Creditor may also need to file a proof of claim in order to protect rights.
In a case where the Debtor has filed a chapter 11 the Creditor may need representation to object to the confirmation of the Debtor’s disclosure statement or Chapter 11 Plan.
In a situation where the Debtor has not yet filed a bankruptcy, the Creditor will have rights to sue the Debtor for breach of contract or in some cases for fraud. If the Creditor has already obtained a Judgment the Creditor will have rights to pursue the collection in different methods such as ordering what is called a “Debtor’s Examination” where the Creditor can depose the Debtor about the Debtor’s assets or be able to place liens on the Debtor’s property.
Although Reganyan Law mainly represents Debtors, we have successfully represented Creditors as well. If you need assistance as a Creditor in a bankruptcy matter you can call me for a free consultation.