7925 Paragon Road, Suite 101, Dayton, OH 45459

937.223.1655 937.223.1655

Creditors’ Rights

Dayton, Ohio Bankruptcy Attorney Assisting Creditors

While bankruptcy laws can provide relief to debtors who have fallen on hard times, they can make it difficult for creditors, who may be forced to absorb a loss. However, if your company or you have received a notice of bankruptcy, you should not assume that you have no rights.Paul H. Spaeth can advise you on the steps to take to improve your chances of being repaid. He is available to assist you in cases related to:

  • Chapter 7 bankruptcy
  • Chapter 11 bankruptcy
  • Chapter 13 bankruptcy

Issues often affecting creditors in bankruptcy cases

The automatic stay is triggered by the filing of a bankruptcy case. The automatic stay refers to an injunction by the Bankruptcy Court that immediately prohibits creditors from taking many actions against the debtor or the debtor’s property. It does not necessarily mean that the creditor has no remedies, but it does mean that any efforts to recover the amount owed must be handled through the bankruptcy process. Paul H. Spaeth assists creditors in reviewing a debtor’s bankruptcy case to see what opportunities may exist for the creditor to advance its claim. In Chapter 7 cases, this may include representation of the creditor client at the meeting of creditors conducted by the bankruptcy trustee or at a debtor’s examination known as a “Bankruptcy Rule 2004 examination” (similar to a deposition). In some instances, it may be appropriate for the creditor’s attorney to file a motion for relief from the automatic stay, to seek dismissal of the case, or to file an adversary proceeding objecting to the discharge of the debt at issue.

Sometimes, bankruptcy trustees file actions against creditors, demanding repayment of money, characterized as preferential or fraudulent transfers. If this should occur, it is important to have counsel well versed in the various defenses that may apply. In Chapter 13 cases, it is important for the valuation of collateral as listed by the debtor to be accurate, as this often affects the amount that will be paid to a secured creditor through the repayment plan. It also is critical that the proposed Chapter 13 payment plan meet all confirmation requirements, especially for the protection of unsecured creditors.  Chapter 11 cases usually present many issues of concern to creditors, that make the retention of experienced counsel critical. It also is important that a proof of claim be filed before expiration of the deadline set by the Bankruptcy Court, if the creditor wishes to receive a distribution.

If the debtor incurred the debt at issue through certain types of misrepresentations or fraud, or if the debtor has attempted to hide assets, you might be able, in appropriate circumstances, to object to the discharge of the debt.  An experienced bankruptcy attorney is critical to pursuing an adversary proceeding (an action filed within the bankruptcy case) objecting to discharge.

Collection Matters (outside of bankruptcy)

Paul H. Spaeth also represents clients in commercial collection matters including lawsuits seeking judgment and pursuit of post-judgment collection remedies such as garnishment, bank account attachment, obtaining certificate of judgment liens, foreclosure, certification and enforcement of foreign judgments, mechanics’ liens, creditors’ bills and other collection remedies.

Contact our office for a free initial consultation

If you delay in asserting your rights, you may lose them. Call Paul H. Spaeth Co., L.P.A. today at 937-223-1655 or contact our office online to schedule a free initial consultation with Mr. Spaeth.