If a debtor has filed for bankruptcy, it does not necessarily mean that you have no way to receive their claims. In Nevada, there are certain steps you can take to make sure your rights as a creditor are upheld. You must be aware of all your rights in order to protect them. This can be a difficult and confusing process. The best thing you can do is consult a bankruptcy attorney. An experienced attorney who deals with bankruptcy cases will be familiar with what needs to be done to protect a creditor’s rights during bankruptcy proceedings. In the case of debtors who do not live in locally, it will be necessary to file a foreign deposition subpoena in Nevada. Only a qualified attorney will be able to take care of things like that.
The Rights Creditors Have
You may dispute a debtor’s right to have all their debts discharged, or they also may dispute the discharge of their own specific debt.
You are entitled to enter arguments in court with regard to matters such as the debtor’s plans for repayment, and the liquidation of the debtor’s non-exempt assets.
You may receive a portion of the bankruptcy estate. Depending on the type and priority of your claim, you may be entitled to receive a share of the estate when it is distributed.
What a Creditor Should Do
The notice you will receive when a debtor has filed for bankruptcy will indicate a time and place to file claims with the court. Bring copies of any contracts or judgments you have related to the debt. Submit those documents along with the claim form when you file your claim.
When you consult Nevada bankruptcy attorney, they will be able to figure out if your claim is not dischargeable. If your claim is in fact not dischargeable, your claim will be preserved even after the bankruptcy goes through.
What a Creditor Should Not Do
When you are notified that a debtor has filed for bankruptcy, you will also be notified that there is an automatic stay in place. This is a court order that prohibits you from contacting the debtor, or attempting to collect on the debt in any way. If there are any violations of this court order you could open yourself up to serious consequences. You might also lose your rights to any repayment on your claim. Be sure not to attempt to contact the debtor if they have filed for bankruptcy.
