How should a creditor proceed if a debtor files bankruptcy?
When an individual files bankruptcy, the automatic stay protects the debtor from all forms of collections so the first thing to do is cease any collection efforts. When you receive the notice of bankruptcy, you should file a proof of claim form promptly. The notice will indicate the deadline to do so. This form must be filed to preserve your right to share in the distribution from the bankruptcy estate.
Related Questions
- If a claim is listed by the debtor on Schedule D as a secured claim, but the creditor files a priority claim, how is this reflected in Exhibits 3 and 6?
- Is Everyone who files a bankruptcy required to take a debtor education or personal financial management course?
- What happens to a real mortgage when a debtor files for bankruptcy?
