What Should Be Expected Of Bankruptcy Creditors
With millions of bankruptcy cases being filed in court today, the parties involved should be equipped with facts on the bankruptcy process. The insolvency creditors as well as the debtors should know what to expect as well as what should be expected of them. This way, any misunderstandings will be kept away since every party is equipped with the facts about the case.
The first thing that the creditor is expected to know is that, the collection action against the debtor should stop immediately the petition has been filed. This is because the assets of the debtor cease to be in his care and is now handled by an appointed trustee. The creditor will thus be in no position whatsoever to contact the debtor on the basis of demanding for payments.
There will be no telephone calls, billing or lawsuits against the debtor. Any such communications will be handled by an attorney or a trustee. The bankruptcy creditor will also be expected to file a claim with the court. The court will send a notice to the creditor through a clerk to indicate where the claim should be filed and by which date.
This party will also be required to understand the various chapters applicable to this case and their rights under each of the chapters. The court expects anyone with claim on the debtors property to find out if their debt is discharged or not. Such a person will be expected to seek the guidance of an attorney or a financial expert if their debts are non discharged.
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