Category Archives for "Chapter 7 Bankruptcy"

Aug 10

How Debtors and Creditors Use Proofs of Claim in a Bankruptcy Case

Blog , Chapter 7 Bankruptcy , Client Service , General Bankruptcy

One of the purposes of bankruptcy is to provide creditors with distributions (made up of the debtor’s assets or income). Creditors must file proofs of claim to receive their share of the distributions. Surprisingly, many creditors do not file proofs of claim, thereby foregoing their shares of the distributions. How Proofs of Claim Work In […]

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May 25

Are preference claims dischargeable in bankruptcy?

Blog , Chapter 7 Bankruptcy

Are preference claims dischargeable in bankruptcy? Within the past week, two different people, a lawyer and a client, have asked whether filing bankruptcy will discharge the claim of a bankruptcy trustee for recovery of a preference.  The answer is yes. One of the powers a bankruptcy trustee has is to recover preferences.  Preferences are payments […]

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