While bankruptcy is often discussed in terms of how it affects those who file, people often forget about those on the other side — the creditors. Creditors in Georgia stand to lose significant amounts of money when debtors file for bankruptcy. If you are in a situation where you might lose out on much of what you are owed, you need to understand your creditor rights.
When someone files for bankruptcy, an automatic stay puts an immediate stop to actions such as collection lawsuits, garnishment and repossession. This can be a serious damper on your plans if you have been putting considerable time and effort into recovering money that you are rightfully owed. Instead of waiting around to see what happens, you could request a stay relief, which would allow you to continue pursuing your recovery efforts. If the court does not approve the stay relief, it could in some instances order that the debtor make adequate protection payments while he or she works on a repayment plan.
You will also need to file a proof of claim if one of your debtors files for bankruptcy. The proof of claim is necessary to receive payments for a claim during bankruptcy. You will need to make sure that your claim includes the following information:
- Your name and address
- The debtor’s account number
- The amount owed
- The type of debt
- The basis for your claim
- Any supporting documentation
The survival of any business in Georgia depends on those who owe it money paying their debts. When someone files for bankruptcy, you are no longer guaranteed to get the money you are owed. You deserve to have someone on your side during this process, and you can learn more about creditor rights and how to reach out for help by visiting our website.