Business Creditor Claims in Bankruptcy

Robert B. Worman and Scott S. Sheffler, the experienced lawyers of Worman & Sheffler, P.A., represent clients in Orlando and throughout Florida for business creditor claims in bankruptcy.

If you are a creditor attempting to collect on an outstanding debt, receiving notice of a debtor’s Chapter 7 or Chapter 13 bankruptcy filing can be especially frustrating. However, the decision on the part of the debtor does not mean that all hope of repayment is lost. As a creditor, you have rights that must be protected. With quality representation behind you, there may be options with which to secure partial or full repayment.

What is Bankruptcy?

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, or on behalf of creditors. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt. Bankruptcy is handled in federal courts, and rules are outlined in the U.S. Bankruptcy Code. Bankruptcy can allow you a fresh start, but it will stay on your credit reports for several years and make it difficult to borrow in the future.

Any decisions in federal bankruptcy cases are made by a bankruptcy judge, including whether a debtor is eligible to file and whether they should be discharged of their debts. Administration over bankruptcy cases is often handled by a trustee, or an officer appointed by the United States Trustee Program of the Department of Justice, to represent the debtor’s estate in the proceeding. There is usually little direct contact between the debtor and the judge unless there is some objection made in the case by a creditor.

Being Discharged from Bankruptcy

When a debtor receives a discharge order, they are no longer legally required to pay debts specified in the order. However, not all debts qualify to be discharged. Some of these include tax claims, anything that was not listed by the debtor, child support or alimony payments, personal injury debts, and debts to the government. Also, any secured creditor can still enforce a lien against property owned by the debtor, provided that the lien is still valid.

What is a Secured Creditor?

A secured creditor is any creditor or lender associated with an investment in or issuance of a credit product backed by collateral. Secured creditors have a first-order claim on the payouts of a distressed credit investment. Suppose a borrower defaults on a secured credit product. In that case, the secured creditors have a legal right to the secured asset used as collateral, which can be seized and sold to pay off remaining obligations.

Commercial and Business Law Firm Serving Florida Clients since 1974

Worman & Sheffler, P.A. aggressively advocates for full repayment of consumer and business debt. The firm actively and thoroughly researches the possibility of fraudulent transfers, discharges obtained by misrepresentation, and the effects of community property laws on nonexempt assets. If our law offices can secure repayment in bankruptcy or vacate the discharge injunction, we will.

The firm can also defend against claims of violating the automatic stay of personal bankruptcy. If you, as a business owner, have been victimized by unfounded claims from a creditor, Worman & Sheffler, P.A. is here to help.

To speak with an experienced creditors’ rights attorney, call for a consultation at 407-843-5353 or 888-279-3811 (toll-free). Our office is in Winter Park, Florida, and we represent clients throughout the state of Florida.