Control your investment
Creditors often feel like they're holding an empty bag as soon as a bankruptcy filing is submitted. There are measures in place to protect your money.
It is important to understand the claim you carry since this information will impact your attorney's strategy. Below are several terms to clarify different kinds of claims:
1. Secured claims: typically a lien on real or personal property.
2. Priority claims: typically wages, commissions, alimony and child support.
3. General unsecured claims: typically personal loans, medical bills and unsecured business related debt.
A creditor or any interested party may wish to submit a bid on the debtors assets prior to or at an auction. A creditor may also benefit from participating in a court litigation. Proper counsel and guidance is necessary to navigate the complex legal process.
Goals can be:
- To preserve your claim.
- To negotiate an agreement and receive debt repayment.
- To ensure a favorable legal outcome when faced with a non-paying debtor.