A person who owes you money is called a debtor. If your debtor files for bankruptcy protection, you may still be able to collect from them in certain circumstances.
First, identify how and why your debtor owes you money. Does your debtor owe you for a loan or a service that you provided to them? Do you have a judgment against your debtor? If you do have a judgment, is the judgment only against your debtor who has filed bankruptcy, or is the judgment against another individual or company?
Second, you need to know what type of bankruptcy your debtor is filing for. Are they filing a chapter 7, a chapter 13, or another type of bankruptcy? Depending on the type of bankruptcy your debtor filed, there are different strategies that you can use in order to recover the money owed.
Your personal knowledge about your debtor can be helpful in developing a strategy for the collection of your debt. Do you know what kind of income your debtor has? Do you know what kind of assets they have? Does your debtor own their own business?
Once a debtor files for bankruptcy, it is important that you develop an ongoing strategy in order to collect any funds legally available under the bankruptcy code as soon as possible. If you wait to take action, you might miss key deadlines, and your claim against your debtor’s bankruptcy estate may be barred by certain bankruptcy law. Even if your debtor is a business that files for bankruptcy protection, you may be able to collect your debt.
At Resnick Law, we offer specialized legal help in crafting a legal way to collect the money you are owed. Please contact us as soon as the situation arises so we can act quickly to obtain what is rightfully yours.