Collecting amounts owed to you from a debtor, whether an individual or a company, can be frustrating, especially if the debtor files for bankruptcy. From protecting yourself in advance with secured loans, to negotiating with the debtor, to preserving your rights in the event of a debtor’s bankruptcy, the attorneys at J. Peterman Legal Group can work to ensure that you are paid what you are owed.
One of the most important things that you, as a creditor, can do to ensure repayment of a loan is to secure the loan. With secured loans, some item of the debtor’s property, such as a house or automobile, acts as collateral for the loan. If the debtor becomes delinquent in making payments, you can foreclose on and sell the collateral, and collect the amount you are owed from the proceeds of the sale.
As a creditor, your main interest is in the repayment of the loan. Sometimes, however, despite their best intentions, debtors become unable to keep up with payments. But you may be able facilitate collection by renegotiating the loan with the debtor, allowing the debtor to make more manageable payments.
Collecting on a Judgment
Often, when a party wins a lawsuit, the court orders the opposing party to pay money damages to the winning party. However, a judgment is not useful unless you can collect on it, and judgment debtors are not always cooperative. An attorney can aid you throughout the process of post-judgment collection, proceeding through the steps of registering the judgment, execution, garnishment, enforcing a lien, and foreclosure sales, so that you can collect your full recovery.
Bankruptcy is not a desirable result for anyone. If you are a creditor, it means an automatic stay on collection activities, you may not be repaid in full, and often, any unpaid amount will be discharged, so that you can never collect from the debtor. An attorney can move to protect your right to collateral on a secured loan, protect your priority status among the bankruptcy creditors.
An attorney also may be able to get the automatic stay lifted; can file proofs of claim; can review and, if necessary, object to proposed plans; and can guide you through the bankruptcy proceedings.
Not all debts are dischargeable in bankruptcy, such as child support and fraudulent obligations. If your debt is not dischargeable, an attorney can work to get a judicial declaration of nondischargeability, allowing you to continue collection actions despite the bankruptcy proceedings.
Contact an Experienced Brookfield Creditors’ Rights Attorney
If you are having difficulty collecting a debt in Wisconsin, there are many legal avenues to explore. An experienced Wisconsin creditors’ rights attorney can evaluate your case and help you collect what is owed to you. Contact our Brookfield office today for a free consultation.