Creditors’ Rights is a generic term. Usually, creditors’ rights refer to what creditors can do to get back money owed to them and their positioning to other creditors of the debtor. Federal and state laws such as the Fair Debt Collection Practices Act (FDCPA) restrict the ways in which creditors may attempt to collect debts. Creditors’ rights involve banks, leasing companies, auto finance companies and property owners in the bankruptcy process. When real personal property is part of a bankruptcy proceeding, a Stay is automatically entered. Once bankruptcy is discharged, the creditor must ask the bankruptcy judge to lift the stay and then may proceed to state court litigation to recover its property on which the borrower/lessee has defaulted.
A commercial lease may fall into default pursuant to 11 USC 365, Executor Contracts and Unexpired Leases. The lessee may assume or reject the unexpired lease of the debtor. If the lessee assumes the lease, the debtor must address past due rents and the remaining rent on the lease and pay administrative costs. If a debtor files for bankruptcy in bad faith or with unrealistic plans for reorganization, the creditor may move for expedited or even emergency relief.
The firm is ready and available to assist you today. (786) 423-6898 or request a consultation .