How to Handle Creditors’ Claims in Bankruptcy?

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How to Handle Creditors’ Claims in Bankruptcy?

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Often people who have been neck-deep in debt find bankruptcy the best possible way to get rid of their loans and make a fresh financial start. Having an attorney to guide you through the process is essential in this case, as the legal terms, as well as the procedure, is complicated for people. For seeking consultation with bankruptcy attorneys, you can call 888-297-6023. Most of the times, people are aware of their debts; the amount and the creditors alike. Usually, when people are under lots of debts, the possibility of losing assets exists. This is true, especially in case of secured debts like mortgage and automobile loans.

When any person files for bankruptcy, Los Angeles based bankruptcy law firm Recovery Law Group informs, their creditors are notified about it. A 341 meeting also known as a creditors meeting takes place where creditors can present information regarding their dues as well as counter any claims made by you. Though it is not mandatory for debtors to attend this meeting, it is important that you are sure that your creditors are not providing incorrect information. Mortgage creditors need to be watched especially carefully as many times mortgage companies have been found guilty of noncompliance of bankruptcy laws.

Several discrepancies have been observed when it comes to mortgage company claims in a bankruptcy case. Mortgage loan providers need to comply with consumer protection laws. Yet, there have been reports of missing documents which might be vital for the case. Late fees and charges also come under the mortgage and might be used against you. If claims of mortgage creditors are not handled properly, you might end up losing your home. It is therefore important to pay attention to the documents and claims made by all your creditors and not just mortgage lenders.


    2021-12-07T04:16:57+00:00