Pensacola Bankruptcy & Creditor’s Rights Lawyer

Planning on filing for bankruptcy? You don’t have to go through it alone. Our Pensacola bankruptcy attorneys can help relieve some stress. Get your case reviewed today: (850) 433-6581

bankruptcy lawyer pensacola

Our Attorneys regularly council secured and unsecured creditors on a wide range of bankruptcies, foreclosures, creditor’s rights, and lender liability issues.

If a person or business that owes you money has filed for bankruptcy, you might assume you don’t have any rights as a creditor.

That does not have to be the case. The bankruptcy process allows consumers and businesses to eliminate or repay some or all of their debts under the protection of the federal bankruptcy court.

That doesn’t mean that you are out of luck. An experienced Pensacola bankruptcy attorney can help you make the most of the situation. 

What is an Automatic Stay?

When debtors file bankruptcy, the bankruptcy creates an automatic injunction against creditors to stop all collection actions. This is called an “automatic stay.”

As a creditor, you may request that the court grant you “relief from the automatic stay,” so that you can resume attempts to collect. It is important to avoid violating the automatic stay in order to avoid sanctions. 

Participating in the Bankruptcy Process

Do not be left in the dark waiting to see if you will get paid. Creditors have the right to participate in the bankruptcy process. The court appoints a trustee to manage the bankruptcy, and this person can be a resource for you.

You may review the debtor’s asset and liability documentation, address discrepancies, and ask questions. You have the right to attend the bankruptcy hearings. 

Types of Bankruptcy in Pensacola

There are several types of consumer bankruptcy. Chapter 7 and 13 are the most common types of bankruptcy for most people. The type of bankruptcy the debtor chooses will determine the remedies available to the creditor. 

The origin of the debt held by the creditor is an important factor because certain debts cannot be discharged. Likewise, some debt discharges can be prevented by filing timely objections. A Pensacola bankruptcy lawyer can help you navigate this legal process.

Chapter 7: Liquidation

In 2020, according to U.S. Court Statistics, Chapter 7 was the most commonly used bankruptcy option with 378,953 cases, which accounts for approximately 70% of bankruptcies.

A court-appointed trustee will oversee the liquidation of assets to pay off creditors. 

Chapter 13: Repayment Plan

Chapter 13 bankruptcy provides a court-approved debt consolidation and repayment plan. Debts are combined into one monthly payment extending over the course of three to five years. Both secured and unsecured loans can be included in Chapter 13.

Chapter 13 bankruptcy is not available to businesses. Debtors must also have a certain level of income to qualify for protection under the Chapter 13 bankruptcy because they will have to make payments to cover those debts. 

Chapter 11: Large Reorganization

Businesses that are in financial hardship have the option of filing Chapter 11 bankruptcy. This type of bankruptcy allows businesses to form a plan to continue operations while they pay their debts. The plan requires approval from both the court and the creditors.

If you disapprove of the plan, you have the right to say so. 

Don’t Go Through Bankruptcy Alone

An experienced Pensacola bankruptcy attorney can help you determine the best strategy to ensure you are compensated.

Our team can provide value by participating in one of your debtor’s bankruptcy cases, taking the lead on all of the paperwork that must be properly and timely filed, negotiating on your behalf, and representing you at all hearings.

We have established an excellent record in:

  • Protection of Creditors’ Collateral
  • Enforcement of Lien Rights
  • Enforcement of Unexpired Leases, Licenses, and Executory Contracts in Bankruptcy
  • Insolvency Counseling and Workouts
  • Chapter 11 Reorganization – Creditor Representation
  • Foreclosures
  • Bankruptcy Litigation
  • Objection to discharge, Discharge ability, and claims
  • Leases and Executory Contracts
  • Acquisition of Bankruptcy Assets

We also assist in areas including, but not limited to:

  • Banking and Credit Union Law
  • Contract and Commercial Litigation
  • Mediation and Arbitration
  • Land Use (including Rezoning, Conditional Use, and Development)
  • Commercial/Business Entity Creation and Operations