| Bankruptcy Law - Questions & Answers
What if someone who owes
me money files bankruptcy?
If you are listed as a creditor
in the case, you will receive notice of the bankruptcy
from the court in which the case was filed. Review
the notice carefully, as it will tell you whether
or not you should file a claim in the case. If
the notice indicates that you should not file
a claim, the court does not expect that there
will be any money to pay to creditors. If the
notice instructs you to file a claim, generally
you must file a proof of claim in order to be
paid. Be mindful of all deadlines for filing claims.
If you fail to file a claim by the date indicated
on the notice, your rights will be significantly
affected.
It is not necessary to hire an attorney to file
a claim for you. You can obtain a proof of claim
form from any bankruptcy court and most office
supply stores. Fill out the form completely and
attach any supporting documents you have that
would help prove that the debtor owes you money.
These may include loan agreements, promissory
notes, IOUs, credit applications. In addition,
you must also attach copies of statements, account
ledgers or computer printouts showing how much
the debtor owed you as of the date the bankruptcy
was filed. Do not include any interest that accrued
on the debt after the date the case was filed
unless you have a security interest in personal
property of the debtor.
You can file the claim in person,
or you can send the claim to the address indicated
on the notice. Be sure to include a copy of the
claim and a stamped self-addressed envelope so
that the court can return a date stamped copy
to you. Also send copies to the debtor’s
attorney and to the trustee.
If the debtor or the trustee
disagrees with your claim, they will file an objection
to it and the objection will be set for a hearing.
If you choose to contest the objection, it is
strongly advised that you contact an attorney
to help you protect your rights. An attorney familiar
with bankruptcy law will understand your options
and will help you to maximize your return.
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