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BANKRUPTCY DOES NOT HAVE TO BE OVERLY EXPENSIVE OR TIME CONSUMING. IT JUST NEEDS TO BE DONE CORRECTLY THE FIRST TIME.
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(559) 447-4700

Creditor Representation

Creditors are as much a part of bankruptcy proceedings as debtors—but they do not engender nearly the sympathy that debtors get. The bankruptcy system exists so that bankruptcy debtors can obtain a discharge of their debts, i.e., so that creditors do not receive payment of their legitimate debts. In theory, a debtor is required to give up all non-exempt property, so that it can be liquidated for the benefit of the creditors, but in practice, liquidation of assets rarely occurs. The reason, of course, is that when a debtor gets a “fresh start,” he or she is permitted to retain all properties that would be exempt from a judgment levy or that fall within a statutory list of properties that can be retained in a bankruptcy. Most cases are “no asset” cases, in which there will be no distribution to creditors. The debtors simply have no property that can be liquidated for the benefit of creditors.

The law offices of Thomas H. Armstrong a Fresno Bankruptcy Attoroney is not anti-debtor.  The bankruptcy system exists for legitimate reasons, and most debtors who file bankruptcy really need the relief that the system gives them. Creditors of such debtors do not need legal representation, because there is usually nothing that can be done to obtain any payment for the creditor.

At the same time, abusive or fraudulent filings sometimes occur. Occasionally, a debtor will attempt to hide assets. Sometimes, a creditor has a claim in a case where there will actually be some recovery for the creditor. In such cases, the law office of Thomas H. Armstrong works with creditors to maximize their recovery.

Similarly, when a creditor has a secured claim, the firm can file a motion for relief from the automatic stay or abandonment of the collateral.  And in Chapter 11 cases, when a debtor is theoretically reorganizing rather than liquidating, the law office of Mr. Armstrong can assist in maximizing the payout to creditors, either directly or through representation of a Creditors’ Committee.

As is true in every type of case handled by the firm, the Fresno Bankruptcy attorney Thomas Armstrong emphasize amicable (or not so amicable) resolutions outside the courtroom.  Negotiation of a settlement is always on the agenda, in the right circumstances.