When an individual or a business decides to file bankruptcy, more than just the debtor are impacted. There are the creditors that will be affected, and there are the individuals in the debtor’s own family that will also be affected by a bankruptcy. Depending upon the type of bankruptcy filed, a creditor might find himself or herself in a position where a loss is suffered, because the debt has totally been wiped out (such as with a Chapter 7 bankruptcy). In any case, if you are the creditor, the moment you find out that your debtor has initiated bankruptcy, you will want to contact your attorney to show that you have The Need to File Proof of Claims in a Bankruptcy Case.
Filing a proof of claims ensures the creditor of the right to get compensated for any monies due him by the debtor’s estate. In the typical Chapter 7 (liquidation) and the Chapter 13 (reorganization of debt), the creditor will not automatically get paid unless he or she has filed this proof of claims in a timely manner. In the case of a Chapter 11, normally filed by business organizations, there will be no need to present a proof of claims, unless the creditor disagrees with the amount the debtor is listing as being owed. In such cases, there exists The Need to File Proof of Claims in a Bankruptcy Case.
It is important to remember how critical it is to file a claim in the timely manner. In some cases, tardiness may be waived if the creditor has not received the notice of the bankruptcy in a timely fashion. Such issues that occur causing the creditor not to be able to file a claim in a reasonable time frame is called excusable neglect. However, these things may be difficult and can get difficult to manage. This is where the hiring of an attorney experienced in bankruptcy law becomes handy. Laura Margulies & Associates are Maryland-based attorneys who have been providing bankruptcy solutions to customers in the Rockville, Hagerstown, and Greenbelt, Maryland areas for well over two decades.
