OVI –Administrative License SuspensionNovember 19, 2019
Creditor Bankruptcy in Ohio
When a debtor in Ohio is unable to pay his or her creditors the money he or she owes to them, the debtor may be eligible to file for bankruptcy relief. In a Chapter 7 bankruptcy, certain assets of the debtor are liquidated and distributed by the court to the creditors of the debtor. In a Chapter 13 bankruptcy, the debtor proposes a plan to pay back his or her creditors through the bankruptcy trustee over a period of time.
Bankruptcy is designed to give the debtor a “fresh start,” but creditors do have rights during the procedure that can be useful and that are meant to protect the creditor’s rights.
Important Aspects of Ohio Bankruptcies
Some of the ways in which a creditor can assert his or her rights during the bankruptcy proceeding include:
- Seeking relief from the automatic stay: One of bankruptcy’s most debtor-friendly features is the “automatic stay.” This is a court order entered when a debtor initially files for bankruptcy that prevents creditors from taking further collection activity against a debtor. Creditors may be able to have this automatic stay set aside where the debtor has filed successive bankruptcies or has included fraudulent information in his or her petition for bankruptcy.
- Filing a claim: Creditors should timely file a claim with the court in order to be eligible to receive some money or compensation. While the debtor’s assets and income will play a significant role in determining what compensation the creditor may receive through the bankruptcy, filing no claim guarantees the creditor will receive nothing at all.
- Objecting to the Chapter 13 plan: Creditors have an opportunity to object to the plan a debtor proposes in a Chapter 13 bankruptcy. This may be an appropriate course of action if the debtor is not proposing a plan in good faith or is unfairly treating one creditor (like a family member or friend) better than another.
- Objection to discharge: A successful bankruptcy for the debtor will result in the discharge of certain eligible debts. In order to get this discharge, the debtor must comply with the court’s orders, including the debtor’s Chapter 13 plan. If the debtor fails to do so, a creditor may object to the discharge, which could result in the court continuing to hold the debtor liable for the obligation.
Taking timely action in a bankruptcy proceeding is crucial, as there are only a few periods of time in the life of a bankruptcy case where the creditor may assert its legal rights.
Speak with an Ohio Creditor’s Rights Attorney Right Away
Creditors in Ohio can benefit greatly from the advice of an attorney who is knowledgeable about Ohio’s bankruptcy laws and who is familiar with the ways in which a creditor can intervene and assert its rights in a debtor’s bankruptcy proceedings. Call Walker Novack Legal Group at (614) 423-8276. You can set up a consultation with our firm and discover the many ways we can help you protect your unique interests in a bankruptcy proceeding.
Walker Novack Legal Group, LLC
5013 Pine Creek Drive
Westerville, Ohio 43081
P: (614) 423-8276
F: (614) 767-0695