Explore Creditor Remedies with Our Minnesota Bankruptcy Attorneys
Our dedicated Minnesota bankruptcy attorneys specialize in assisting creditors in assessing their options when debtors resort to bankruptcy protection.
Bankruptcy serves as a legal process offering individuals and businesses facing financial challenges an opportunity for a fresh start. When opting for bankruptcy, all efforts by creditors to collect money or seize property are immediately halted until debts are discharged or arranged in compliance with the law.
At Dougherty Molenda, we are committed to assisting creditors in navigating to the claims process and monitoring bankruptcies, both large and small.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy stands as the most comprehensive form, applicable to both individuals and businesses. All unsecured debts are terminated, and any remaining funds are distributed after secured creditors are paid and legal exemptions are claimed by debtors.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy delays and reduces payments to creditors over time. This option is commonly chosen by wage earners and small businesses, utilizing a Chapter 13 Plan for individual reorganization. Chapter 11 is reserved for larger businesses, resembling Chapter 13 but with additional requirements.
Creditors’ Actions: Objecting to Discharge and Commencing an Adversary Proceeding
It’s important to be aware that creditors have the right to object to the discharge of debts in both Chapter 7 and Chapter 13 bankruptcies. Creditors may raise objections if they believe the debtor has engaged in fraudulent activities or has not fulfilled their obligations under the bankruptcy process.
In some cases, creditors may commence an adversary proceeding, a separate legal action within the bankruptcy case, to challenge the discharge of specific debts. Our attorneys at Dougherty Molenda are well-equipped to navigate these situations and advocate for your interests, ensuring a thorough understanding of the complex dynamics involved in creditor remedies during bankruptcy proceedings.