It may seem that debtors have all the rights and power under the law, but the truth is that creditors – those who loan money or property to others – have rights as well. Debtors are not (and should not be) permitted to take advantage of a situation by refusing to pay what they agreed to but keeping property they have purchased with the borrowed funds or assets.
Options Available to Creditors to Collect Amounts Owed
As a creditor, you may be able to obtain a judgment through court and then:
- Garnish wages: If a debtor is employed, you may be able to obtain an order directing his or her employer garnish (or take) part of his or her paycheck and pay you instead. In this way, you are certain to receive regular payments toward the amount the debtor owes.
- Seize assets: For larger and more significant loans or obligations, or those obligations secured with collateral (such as a car loan or home loan), you may be entitled to recover assets purchased with the loan or recover the item or items pledged as collateral for the loan. You may then be able to sell those assets or items to recover the amounts you owe.
- Bankruptcy: Even if a debtor files for bankruptcy, you may be able to petition the bankruptcy court for relief if you believe the debtor is filing for bankruptcy in bad faith. If the debtor files for Chapter 13 bankruptcy, you must file a claim with the bankruptcy court within the time allotted if you wish to request repayment of your obligation.
You Have Rights! Protect Them with Papian & Adamian’s Assistance
Call Papian & Adamian today at (818) 649-1411 if you are a creditor who is having trouble collecting amounts owed from a debtor. We may be able to assist you in recovering the amounts you are owed in a timely manner.
If someone owes you money and files for bankruptcy, we can help you protect your rights as a creditor by taking the following actions:
- FILING PROOF OF CLAIM
- CONTESTING DISCHAGEABILITY OF THE DEBT
- EVICTION OF A TENANT IN BANKRUPTCY
- OTHER OPTIONS