Overview
Our attorneys represent both Debtors and Creditors with regard to Creditors’ Claims. Our attorneys’ extensive experience in Bankruptcy Courts throughout the Bay Area makes us specially suited to assist clients with prosecuting and defending actions to collect on claims. The Law Office of Howard L. Hibbard is also retained by local bankruptcy attorneys to assist their clients with defending claims and lawsuits filed by Creditors. To arrange a free consultation with one of our attorneys to discuss bankruptcy claim collection, contact us.
General Information about Creditors Rights
Creditors listed in the Debtors Bankruptcy Petition are mailed a Notice of Filing and of Meeting of Creditors. Creditors sometimes mistakenly believe that the Bankruptcy filing extinguishes their rights to collect. This is not true. Creditors are entitled to a share of the bankruptcy estate based upon the priority of their claim. See Priority of Claims below. Upon receipt of the Notice of Bankruptcy, Creditors should file a Proof of Claim form with the Court outlining the Creditor’s claim against the Debtor.
Creditors who have State Court or other actions pending against a Debtor at the time the Debtor files for Bankruptcy will be subject to an Automatic Stay. The Automatic Stay means that the Creditor cannot continue with the State Court or other action or pursue collection of the debt outside the Bankruptcy Court without permission of the Bankruptcy Court.
Creditors are urged to consult an attorney regarding the nature of their claim as filing deadlines are strictly enforced. Depending on the nature of the claim, a variety of options are available to Creditors. Creditors may for example, file an Adversary Action to challenge the discharge of the debt or request relief from the Automatic Stay arguing that the Creditors rights are not adequately protected and cause exists for the Creditor to pursue relief outside the Bankruptcy system.
Types of Claims
Generally, claims fall into two board categories: (1) secured claims and (2) unsecured claims. Secured claims are those which are supported by a lien on real or personal property. Examples of secured claims are mortgages, equity lines of credit and car loans. Unsecured Claims do not have the support of a lien against property but are general obligations. An example of an unsecured claim is a credit card.
Priority of Claims
Claims are paid in the order set for the in 11 U.S.C. §507 as follows:
(1) Debts for court order child or spousal support;
(2) Bankruptcy administrative expenses;
(3) In an Involuntary case: unsecured, post petition claims;
(4) Wage claims of employees and salespersons (up to $10,000.00 per claim);
(5) Contributions to employee benefit plans (up to $10,000.00 per employee);
(6) Claims of fishermen and farmers against Debtors with storage or processing facilities;
(7) Claims of persons who made a deposit for item they did not receive (layaway claims);
(8) Recent taxes for income, sales, employment or gross receipt.
Services We Provide
The Law Office of Howard L. Hibbard provides the following services to our clients: (1) consultations, phone calls, and status letters to clients, (2) Preparation of all necessary pleadings and forms; (3) Legal research as necessary, (4) Preparation of all trial/hearing exhibits and witnesses, (5) Hearing and/or Trial representation, (6) Service of Papers and Court Filings.
The Law Office of Howard L. Hibbard is well versed in Bankruptcy procedures and has a strong track record of trial victories. If you have questions regarding Creditor’s Claims, please feel free to contact our office for a free consultation: contact us.