When a creditor has failed to obtain payments from the debtor, the creditor may sell the debt to a debt collector. If the debt collector or creditor is still unable to collect on the debt they may employ a law firm to pursue the debt through a lawsuit. The initial start of the lawsuit begins with notice to the debtor that they are being sued.  

When you decide to file bankruptcy there are other individuals and terms that are used when describing the process and your case.  Here are a few different parties you’ll come across during your bankruptcy.

Receiving a Summons and Complaint from a creditor, or being threatened with a judgment can be scary, but what does it really mean for you financially? This is a question that a lot of potential clients have when we first meet. Please read on to find out more!

Occasionally debtors will find themselves in a situation where they are continuously being hounded by creditors. The debts have been sold and resold and many times debtors are not even sure who they owe funds to anymore. Unfortunately, this can make those debtors vulnerable to scams. If a debtor receives a call from an aggressive creditor demanding payment and the creditor is offering a substantial discount the debtor may be tempted to take the deal-even though the debtor does not know the exact source of the debt.

Hi, Wes Scott from LifeBack Law Firm, one of the busiest bankruptcy law firms in Minnesota. LifeBack Law has been protecting Minnesotans from their creditors since 1972 and we can protect you too. The most kind, helpful, professional and exceptional customer service in the industry. Get your life back by calling today, you will be so glad you did.

Occasionally clients will tell me that they would only like to file bankruptcy on one or just a few of their creditors. While this is not entirely possible, there are some similar options.

The Office is one of my favorite TV shows of all time. In one of the more memorable episodes, Michael Scott tries to “declare bankruptcy” simply by shouting it for everyone in the office to hear. Bankruptcy law dates back to 1542 in England, but even back then, I don’t think shouting that you declare bankruptcy would be enough to put your creditors on notice.

It is common for people to pay back their family members for past debts owed to them instead of paying back other creditors, such as credit card companies and medical providers. This can be problematic because Minnesota law requires creditors be paid back equitably.

When you are suffering from overwhelming debt, the ring of a phone or the opening of your mailbox can turn your stomach. Any phone call or letter could be from a creditor, a creditor’s collection agency, their attorney, or even all three! Any notice could be a summons or judgment. Our clients have lived in fear of creditor harassment –never knowing what lengths creditors may go to in order to try to collect. 

Once a bankruptcy case is filed, the debtor is protected by what is known as an ‘automatic stay.’ This is a fancy legal term that essentially means that all creditor communication with the debtor must stop. This also stops all further collections actions from creditors that are listed on the debtor’s bankruptcy petition. Once this automatic stay is in place debtors don’t have to worry about creditor calls, letters, or collections –it’s a powerful thing, the automatic stay. 

When you file for bankruptcy, you are required to notify all of your creditors. This gives your creditors the opportunity to challenge your bankruptcy filing - they might argue that you shouldn’t be allowed to file bankruptcy at all, or they might have an issue with some particular aspect of your bankruptcy. As intimidating as this may sound, the reality is that you will be given an opportunity to respond to their challenges, and ultimately, the court will decide whether or not you should be allowed to proceed. It may still sound scary, but rest assured that the playing field while in bankruptcy is much more level than it was before you filed for bankruptcy. If you’re worried about possible objections to your bankruptcy case, a Minnesota bankruptcy attorney can help you both avoid and respond to those objections.

It seems like such a simple question doesn’t it? What is a creditor? A creditor is someone who you either owe money to or claims you owe money to.

For example, you might have a 10k balance on your Master Card account. Master Card is a creditor of yours. You owe them 10k and they would like you to pay them 10k.