When you file for Chapter 13 bankruptcy, you're asking the courts to come up with a plan to help you tackle your debts. In the process, many of your creditors will end up making less than if you'd repaid the debt as originally agreed. It can be easy to wonder if your creditors will try to stop the process, but the good news is their rights are limited.
At the Craig Black Law Firm, we know the bankruptcy process can bring plenty of questions. I'm here to answer those questions. When you call our office, I'll answer the phone. If you're considering Chapter 13, give me a call at 678-888-1778 or complete this contact form.
The Right to Object
An important part of the bankruptcy process is the 341 meeting, also known as a meeting of creditors. In most cases, the meeting is between the trustee and the debtor, but creditors are notified of the meeting and invited to attend.
Once the court has issued a repayment plan, your creditors will be notified and given the chance to respond. They can review the plan, compare it to what you owe, and object if they feel it's not accurate. They also can show up at the confirmation hearing to state their case.
Secured Debts and Creditor Rights
Some debts have collateral attached. A mortgage or car loan, for instance. Chapter 13 bankruptcy won't necessarily wipe out that obligation. When you file, you'll have one of three options:
- Surrender the property
- Make payments on the debt through your repayment plan
- Pay off the debt outside of the repayment plan
If you decide not to pay off the debt, the creditor has the right to seize the property under the terms of your original contract.
Unsecured Debts and Creditor Rights
Unsecured debt doesn't come with the same rights. The creditor will be notified and offered the chance to object, but unsecured debts are considered lower-priority debts than those that are secured. That means that even on the repayment plan, those debts won't be given the majority of the attention.
What are unsecured debts? Any debt that doesn't require collateral. Unsecured debts include:
- Student loans
- Personal loans
- Payday loans
- Credit card bills
- Medical bills
- Utility bills
- Some lines of credit
The Craig Black Law Firm Approach
While you don't need an attorney for a Chapter 13 bankruptcy filing, it can ease the process. You'll have a partner on your side to help you through the process. An attorney will also work with you to gather the information necessary for a successful filing.
If you're considering Chapter 13 bankruptcy, the Craig Black Law Firm is here to help. I can answer any questions you have and help you get started with the paperwork. Give me a call at 678-888-1778 or complete this form to find out how I can help.
META TITLE: Creditor Rights in Bankruptcy | Craig Black Law Firm
META DESCRIPTION: If you're considering divorce and Chapter 13 bankruptcy, the timing can be tricky. These tips will help you weigh your options.
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