Hudson, Potts and Bernstein has represented banks and financial institutions since its founding nearly 150 years ago. That tradition continues today with an active creditors’ rights practice that spans the entire state of Louisiana in both state and federal courts. From foreclosures and repossessions to Chapter 11, 12, and 13 bankruptcy proceedings, HPB excels at protecting and enforcing the rights of creditors.
Real creditors such as finance companies and banks engage in legal contracts with borrowers to loan the person money. Sometimes though, those borrowers don’t pay the money back, causing the creditor to move into a collection’s role in an effort the recoup their money.
The law firm of Hudson, Potts & Bernstein works hard to help creditors protect their rights.
What rights does a creditor have when the debtor doesn’t pay their debts?
There are laws that protect creditors and give them certain rights when the person who borrowed money from them does not pay.
They often have several options in such cases:
A creditor has the right to receive payment for the money that they loaned. The law provides legal channels to make that happen.
What if the debtor files bankruptcy?
If the debtor declared bankruptcy, the creditor may have some recourse.
In some cases, the court will notify the creditor of the bankruptcy proceedings. The creditor may have the opportunity to object to the discharge of their debt by filing a motion or adversary proceeding.
Sometimes the court will rule that the debtor’s non-essential assets must be sold so that they can repay at least some of their debts. In such cases, the bankruptcy trustee will prioritize the debts and pay them. High priority debts include:
How are a creditor’s rights protected?
There are several laws that protect both the creditor and the debtor:
These laws define the steps a creditor is legally able to take to get payment on the money they loaned. Because these steps are backed by law, there is little recourse that debtors have as long as the creditor stays within the confines of the law.
What are the responsibilities of a creditor?
Creditor’s rights attorneys: We’re on your side
At Hudson, Potts & Bernstein we work hard to make sure that your rights are protected. We are here for your compliance issues, collections protocol, and more. Call today and get the legal representation and protection you deserve.
Schedule a consultation with one of our experienced attorneys by calling 318-388-4400.