Bankruptcy For Creditors
After years of helping both creditors and debtors through bankruptcy, I’ve decided to focus solely on helping debtors. But I’m happy to give you names of excellent creditor lawyers.
Consider bankruptcy an area of law that holds our lives together and keeps our economy flourishing and healthy. Allow bankruptcy law the credit it deserves. It enables individuals and corporations to restart their lives. Allows them to pay their taxes, buy food and other requirements, or pay their employees so that they can purchase food and other essentials.
All of this and more is why I am ecstatic to be able to assist debtors in understanding bankruptcy.
Diane L. Drain
Creditors Bankruptcy FAQs
Examine all loan and security paperwork to confirm that they are comprehensive and that all necessary measures to perfect liens on any collateral supporting the obligation have been taken. If not, never take any action without first obtaining an order from the bankruptcy court. This is a critical phase that determines the strength of a secured creditor’s position in the case. Section 506 explains how a secured claim’s value is determined. Although correcting inadequacies after the filing of the petition may be a violation of the automatic stay, it is critical to be aware of any issues. The secured creditor may have a period of time to perfect the creditor’s lien when the debtor gets possession of property or a transfer is made under Section 547(c)(3) and (e).
The secured creditor or landlord may ask the debtor to sign a new contract called a “reaffirmation agreement” or “assumption of lease” after the bankruptcy is filed but before the discharge is issued. This new contract has the same terms as the original, and Sections 524(c) and (k) describe the paperwork, disclosures, and procedures that the creditor must follow in order to get this new contract. It must be approved by the Court in order for the debtor to be bound by it. Because 524(k)(5)(B) requires the debtor’s attorney to certify that the debtor will be able to make the payments, it’s likely that no debtor’s counsel will sign the reaffirmation agreement. This is not only absurd, but it also begs the question of how anyone could certify someone’s ability to pay a future debt.
Below is a link to a video of Bankruptcy Judge Eileen W. Hollowell, filmed explaining the reaffirmation process.
Look for a reason to object to a debt being discharged under Sections 523 or 727. Creditors have only 60 days from the date of the initial creditors’ meeting to initiate a complaint to have their debts declared non-dischargeable due to a misleading financial statement. A creditor’s chances of winning a non-dischargeable lawsuit are slim, and the creditor will almost always be denied attorney’s fees and expenses for filing the action.
Creditors will be notified of an initial meeting of creditors (Section 341, Meeting of Creditors) to be held by the bankruptcy trustee shortly after a bankruptcy is filed. You are welcome to attend the Section 341, Creditors’ Meeting, but it is not compulsory. This meeting allows the creditor to ask the debtor a few questions about the creditor’s claim, collateral, other claims against the debtor, the debtor’s plans for its bankruptcy case, and other financial matters. Time if short, so I t is not appropriate to interrogate the Debtor at this time (check out 2004 examinations). This is an excellent moment to inform the Trustee (the person in charge of the meeting) of any inconsistencies detected in the schedules by the creditor. Make sure you can back up any claims you make. The meeting might be attended by either the creditor or its counsel.
An order granting a Motion for Relief from the Automatic Stay, often known as a “stay order,” is obtained by filing a Motion, Notice, and Certificate of Mailing with the court, as well as notifying the appropriate parties. The Debtor is given the opportunity to respond. A hearing will be conducted if a response is filed. An Order, Certificate of No Objection, must be submitted with the Court if no response is filed. The Order will most likely be signed by the Court. The creditor is free to proceed with the action requested in the Motion and granted in the Order once the signed order is received.
Creditors Rights in Arizona
The legal term “Creditor’s Rights” refers to the area of practice for lawyers that concentrates on creditors’ rights and obligations. The Bankruptcy Code has numerous provisions to assist creditors and protect their interests if a bankruptcy petition is filed.
Creditors Rights in Bankruptcy
Attorneys who specialize in creditors rights will typically do one or more of the following:
- To collect consumer debts, file lawsuits and employ other legal means (i.e. debts owed by individuals).
- To collect commercial debts, file lawsuits and utilize other legal collection procedures (i.e. debts owed by businesses).
- In a bankruptcy procedure, represent the interests of a creditor.
- If a buyer defaults on a payment, conduct a foreclosure or trustee’s sale of the property.
- If the buyer defaults on payment, the secured items (such as autos) can be recovered.
- As needed, garnish paychecks or bank accounts.
- Non-exempt property can be sold at a sheriff’s sale.
- Other contractual and legal remedies may be pursued.
Attorneys may charge an hourly rate or a flat fee. Fees and charges are usually determined by:
- The bankruptcy chapter (Chapters 7, 11, or 13);
- What you wish to achieve;
- The extent to which the borrower will oppose your goals.
Clients from all across Arizona have put their trust in us
thank you for all of your help
"thank you for all of your help" C.S. As difficult as this entire process was emotionally and physically bringing everything together my experience with you has been amazing and much easier than I thought it would be thank you for all of your help. [...]
It felt like we had some friends who cared about us
It felt like we had some friends who cared about us. S.D. My husband and I wanted to begin the process of starting our bankruptcy, but it’s really scary not knowing who you can trust and who would step up to bat for you. Diane and Jay [...]
thank you for helping me keep my car and some self respect
"Thank you for helping me keep my car and some self respect." G. Diane – thank you for helping me keep my car and some self respect. This was so hard to do. I did feel a sense of relief once I saw you and we actually were [...]
It was clear she cared and was committed to helping people
"It was clear she cared and was committed to helping people." Posted on AVVO Anonymous When I made my decision to file for bankruptcy I did some research. I went through a link on the U.S. court website and read a lot online. Referrals from the court website [...]
Her warmth and caring and wealth of experience greatly eased the stress
Her warmth and caring and wealth of experience greatly eased the stress. J.R. One and a half years ago, after a series of physical problems, I finally admitted to myself that I could no longer handle my debt load. I was going under, and knew I would [...]
I was in financial turmoil for various reasons and was running scared
"I was in financial turmoil for various reasons and was running scared" G.S. Five years ago, I was in financial term oil for various reasons and was running scared. I did not know what to do or how how was going to get out of the mess [...]
I really felt I could trust you
"I really felt I could trust you!" Excess Sales Proceeds, P. EXCESS SALE PROCEEDS: P. and I would like to thank you both, especially you Jay, for all the work you did in obtaining our Excess Funds check today. You somehow managed to get this done between January [...]
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Diane guided us every step of the way.
“Her assurance that there was nothing to be ashamed of, gave us the incentive to proceed.” D. Diane was fabulous during our bankruptcy, guiding us every step of the way. After medical bills got us behind, we didn’t know where to turn and felt uncomfortable filing. Her assurance [...]
Great attorney
"Great attorney" J. I live in Las Vegas and had a legal matter involving bankruptcy. My attorney in Las Vegas informed me that I would need an attorney from Arizona since the claim was filed in Arizona. I knew no one so went online and searched for Arizona attorneys. [...]
Her expertise and guidance are unsurpassed
“Her expertise and guidance are unsurpassed” P.H. Diane and Jay are an impeccable professional team! She explains everything you need to know and puts your heart and mind at ease with her compassion and understanding throughout the filing process. Her expertise and guidance are unsurpassed! [...]
We were provided affordable comprehensive representation.
“We were provided affordable comprehensive representation.” R.B. I consulted the law office of D.L. Drain expressing our need to file bankruptcy having very limited resources. They accessed our situation and needs; educated us about bankruptcy options and ramifications. We were provided affordable comprehensive [...]
very compassionate and explains everything
"very compassionate and explains everything" J & B.S. It was such a pleasure working with Diane through this difficult process. Diane is a wonderful attorney who not only knows the bankruptcy law inside and out, but is very compassionate and explains everything in detail through each step [...]
My wife and I would highly recommend this lawyer!
"My wife and I would highly recommend Diane Drain" B & D My wife and I would highly recommend Diane Drain to any one who is considering bankruptcy. She handled our case professionally and in a very timely manner. Diane and her team made a long, frustrating process [...]
Diane Helped Me Understand the Process
“She helped me understand why and how certain steps were necessary...” N.G.. I greatly appreciated Diane's thoroughness and ability to explain the process. She helped me understand why and how certain steps were necessary which reassured me that this was the right decision to make and that [...]
Bankruptcy and New Arizona Homestead Statutes
Bankruptcy Issues After January 1, 2022 Changes in Arizona Homestead Statutes Reprint from Gary Stickell’s website: January 19, 2022 The [...]
- The Arizona Statute of Limitations Applicable to Collection Lawsuits and Non-Judicial Trustee’s Foreclosure Sales of Real Property, Gallery
The Arizona Statute of Limitations Applicable to Collection Lawsuits and Non-Judicial Trustee’s Foreclosure Sales of Real Property,
Collection companies & Debt buyers, Creditors Rights, Debt Relief Agencies, Foreclosure, Trustee Sale and Foreclosure Videos
The Arizona Statute of Limitations Applicable to Collection Lawsuits and Non-Judicial Trustee’s Foreclosure Sales of Real Property,
The Arizona Statute of Limitations Applicable to Collection Lawsuits and Non-Judicial Trustee’s Foreclosure Sales of Real Property, article by Larry O. Folks, Folks Hess, [...]
Enforcement of Arizona Money Judgment Against Debtor’s Residence “Homestead” Property
Analysis of Enforcement of Money Judgments in Arizona Against a Judgment Debtor’s Residence / “Homestead” Property By Larry O. Folks (10/26/20) (reprinted with permission [...]
Supreme Court – Statute of Limitations under FDCPA
Holding: Statute of limitations begins to run when the alleged FDCPA violation occurs, not when the violation is discovered. […]