Creditor’s Rights
Collecting business debts can be difficult enough without worrying about whether you’ve stepped over the line in going about the collection. Creditors’ should be aware of their rights before going ahead collecting debts. There are generally two types of debts that the creditors must be aware of. Secured debt means that there is some property (collateral) that the debtor has pledged to secure payment of the loan – business property with a mortgage, for instance, or equipment with an equipment loan. Unsecured debt means there is no property pledged to secure payment, as with most credit card debt, for example.
Collecting secured bet requires legal help and you must try and get the advice from one of the leading attorneys at The Armstrong Firm. The attorneys at The Armstrong Firm will help you in getting back what you require and can also assist you if you are trying to foreclose on a mortgage. You must be aware that secured loans are easier to collect and you would not face much difficulty but while collecting unsecured debt you need the assistance of the attorney as the unsecured debts are often not documented in a formal agreement and you would definitely require the evidentiary proof supplied by an attorney to help your cause.
What are my Rights as a Creditor?
Often times Creditors assume that in cases of a debtor’s financial hardship or Bankruptcy they lose their rights to a claim. At The Armstrong Firm we have provided many Creditors support and litigated tirelessly to help them win their share of a bankrupt estate, their place at a debtor’s court hearing when liquidating assets and pushing for proceedings to prevent debts from being discharged. Even after bankruptcy cases, creditors may also have rights to ask a debtor to honor their debts even after they have been discharged.
Will the State I live in or do business from affect my rights?
While Bankruptcy hearings occur in Federal, not State court, Creditor’s Rights do vary from State to State. Local laws and regulations may be stricter than those governed under the Fair Debt Collection Practices Act (FDCPA) and at The Armstrong Firm we will be able to tell you without a doubt what specific laws you must follow when collecting debts.
Does the kind of debt matter?
Just as Creditor’s Rights are different depending on the State, they are also dependant on the type of debt. These differences depend on a variety of factors including whether debt is secured or unsecured and the type of assets the debtor owns. With decades of experience, The Armstrong Firm will work diligently to inform you of your rights as a Creditor and litigate to recover what is rightfully yours.
Court-Based Remedies
There are various remedies available with creditors to claim the amount from the debtor. However, the best method to claim the amount remains court proceedings and for that you should definitely contact the attorneys at the Armstrong Firm. Our attorneys would also inform you that there are certain extraordinary options available to the creditors, whereby they can seize the debtor’s property even before the court decides the matter.
At the Armstrong Firm we always state the possible outcomes clearly to our clients. You should know that two of the more common pre-judgment remedies are replevin and attachment that are available to the creditors. In a replevin action, a creditor that holds title to property that is the subject matter of a debt have the option of taking that property back, whereas in attachment there is a court hearing and the procedures are often different and vary from state to state. If you are a creditor, then you definitely need the help of an attorney to get the court to decide in your favor and help you take the debtor’s property or title to the property. However, you should also know that like replevin, attachment is also available only under extraordinary cases.
Lawsuits and Liens
At the Armstrong Firm we are with your case at all times and we would give our entire facilities to provide you with a favorable outcome. If by any chance all of the remedies described above fail, then you being a creditor can definitely sue the debtor to collect the debt. Our attorneys are well equipped with years of experience in such cases to help you get an enforceable judgment that will entitle you to the claim. Once the judgment is obtained, you can enforce the judgment by claiming enough of the debtor’s property to cover the debt, usually with the assistance of the local sheriff. All this can be easily accomplished with the help of the Armstrong Firm attorneys.
A lien on the other hand is another type of legal claim to the debtor’s property that helps ensure debt repayment. Lien cases can be filed by the creditor to collect on a debt and prove his case with the help of an attorney. The judgment would allow you to claim a lien against the debtor’s property in the amount of the judgment. Our experienced attorneys are continuously helping creditors to claim liens against debtor’s property and get back the amount that they deserve. Sometimes, the creditor can also have the right to foreclose the lien on the debtor’s property and sell the property to satisfy his debt. All these rights and different options are available for the creditor which he can only avail of if he knows his rights, or if he seeks the advice of a reputed law firm like the Armstrong Firm.
Involuntary Bankruptcy Proceedings
Lastly, if the above debt-collection tactics do not work, our attorneys would initiate an involuntary bankruptcy proceeding against the debtor so that you as the creditor can get back what you deserve.
Finally, you must remember that at The Armstrong Firm our learned attorneys would help you claim the right amount generated by the liquidation of the property of the debtor. You should know the liquidation amount before you can claim your share. You should also be aware that you have the right to contest a discharge. However, it would be your responsibility along with your attorney to prove that there has been fraud with regard to the debt on which the discharge to the debtor was granted. The repayment plan of the debtor can be reviewed by the creditors and you can bring the court’s notice to it. All these rights are not easy to understand and know, so you must definitely contact the Armstrong Firm’s attorneys and let them guide you. If you do not avail our services then there would be chances that the debtor would get a discharge without paying a sufficient amount or he might even get your claim discharged without payment. To lay claim to the debtor’s non exempted assets you must contact us immediately. We are at your service at all times.
