Bankruptcy Attorney in College Station Discusses the Proof of Claim Requirement
One of the most important aspects of the bankruptcy process is the proof of claim filing. When it comes time to restructuring or liquidating your assets, the proofs of claim filed will be the only debts the court will recognize as valid, as such the only debts you are required to address.
Your bankruptcy attorney in College Station will advise you that failure on the part of any alleged creditor to file the proof of claim within the required time period will result in a forfeiture of that creditor's right to collect, which can significant reduce your debt liability and offer you a shorter path to a fresh financial start.
The Procedural Details of a Proof of Claim When a debtor has filed for bankruptcy, the court usually enters an automatic stay requiring all creditors to cease collection activity for the time being. This stay can be particularly helpful if you are facing a foreclosure, as it can buy some time before the judicial sale of your home commences.
Once your petition is filed, a notification will be sent to all creditors you identify as holding secured or unsecured debt in your name. Under the Federal Rules of Bankruptcy Procedure, a proof of claim is timely filed if submitted within 90 days of the first meeting of the creditors, which occurs within six weeks of the filing of your petition. However, there are several exceptions to this deadline which your bankruptcy attorney can explain in further detail.
Contact a Bankruptcy Attorney in College Station Right Away If you are considering bankruptcy and have questions about the payment of your debts, a bankruptcy attorney from the Peterson Law Group, can help. Call 979-703-7014 today for an appointment.