Bankruptcy is a legal framework that allows debtors who cannot pay their debts to reorganize their finances and rebuild their lives.
Bankruptcy law defines the procedures for bankruptcy and the rules for determining what happens to the debtor’s assets during bankruptcy and which debts the debtor must repay.
Bankruptcy usually involves a balance between the rights of the creditors to expect payment and the debtor’s needs to move forward in life. For society to function, contracts should have the force of law. It is as important that the process respects the rights of all people.
The most common types of bankruptcy take their names from the chapters in the bankruptcy that describe the process.
Chapter 7 bankruptcy is for individuals who cannot pay their debts. The court typically liquidates the debtor’s assets, with some exceptions, and relieves the debtor of the obligation to repay most debts.
Chapter 13 bankruptcy is a form of bankruptcy designed for debtors who can eventually repay debts. It allows the debtor to keep more of their assets but requires the debtor to repay debts over the next few years.
Chapter 11 Bankruptcy allows business owners who are insolvent to restructure their business.
During a bankruptcy proceeding, the debtor is seeking protection from creditors and the right not to pay debts or to pay them over a longer time frame. This can cause creditors to lose money or assets. Creditor rights lawyers represent creditors and make sure that their rights are protected.
Why Is It Important for Colorado Creditors to Have Representation in Bankruptcy Proceedings?
If someone who owes you money has filed for bankruptcy, you need to know what you can and cannot do during the bankruptcy proceeding. A bankruptcy attorney advocates for the client in many ways. Advocacy can include:
The law allows for adversary proceedings, which are separate lawsuits that can influence the course of a bankruptcy case. A bankruptcy attorney can initiate proceedings on your behalf if you believe the court is not respecting your rights or if a debtor is acting in bad faith.
Douglas D. Koktavy, Esq. understands real estate law, banking, and finance law in Denver, Colorado. He and his legal team have experience arguing on behalf of creditors in Denver bankruptcy and insolvency cases.
Creditor bankruptcy is one of the primary Colorado Creditor Law Practice Areas. If you need a creditor bankruptcy attorney, learn how our firm can help you by calling 303-758-6601 or visiting the office at 10200 East Girard Avenue Building B, Suite 120 in Denver, CO.