All too often, creditors get a bankruptcy notice and they quit. They assume they have neither rights nor alternatives with respect to their claim against the debtor. This is not entirely so, creditors in bankruptcy are entitled to:
Share in any distribution from the bankruptcy estate according to the priority of their claim. Most unsecured, non-wage claims come low in the priority scheme, and may receive little or nothing.
Be heard by the court in matters concerning the debtor’s plan (in chapters 11, 12, and 13), the liquidation of the debtor’s nonexempt assets, and payments from the assets of the estate. Continue reading