Baltimore Creditors Rights Lawyer: Protecting the Interests of Financial Institutions and Creditors
In today’s economy, we hear a lot about how the recession has affected individuals and businesses. Our newspapers run human-interest stories about people in debt who have taken out second mortgages, maxed out their credit cards, and have loans piling up from school, cars, or homes.
What we haven’t heard much about are the creditors that have loaned these individuals and businesses money. In a poor economy, it’s not just the people in debt who face challenges. The creditors who have loaned money—and aren’t being paid back—can be in just as much danger of having their own financial stability crumble.
A False Sense of Power
If you asked most people who holds the power in the relationship between creditors and debtors, they would almost undoubtedly say that the creditor has the upper hand. After all, they would say, the creditor can have your assets seized, can have your wages garnished, and can have your credit rating lowered to a point where you can no longer buy a home or other large purchases.
In reality, however, creditors do not have the leverage that everyone assumes. It is often the debtors who ultimately decide when—or if—loans will be repaid. Despite delinquency notices and other payment incentives, if the debtors won’t pay, the creditors and financial institutions will be the ones that pay the price.
Virginia, Delaware, Pennsylvania, and Maryland Creditors’ Rights
If you are a creditor or manage a financial institution, you do retain certain rights when you enter into a loan agreement with a debtor. You provide the loan with the understanding that it will be paid back in full. While the amount to be paid is sometimes changed by the courts, you still hold a claim to the assets of the debtor.
There are several instances when a creditor may become concerned about a particular loan or claim. Usually, this occurs when the borrower’s payments become delinquent or the borrower has filed for bankruptcy.
When a borrower files for bankruptcy, financial institutions have several rights as creditors. They are entitled to:
- Share in the distribution from the bankruptcy estate.
- Be heard in court for matters concerning the debtor’s plan in chapter 11, 12, and 13 bankruptcies; the liquidation of the debtor’s nonexempt assets; and the payments from the assets of the estate.
- Challenge a debtor’s right to discharge the debt.
What a Maryland and Virginia Creditors’ Rights Lawyer Can Do For You
When delinquency notices aren’t motivating your borrowers, the best course can often be taking legal action. Maryland and Delaware financial services attorney Ron Drescher of Baltimore and Wilmington has over twenty-five years of experience as a bankruptcy creditor lawyer. Helping creditors throughout Maryland, Delaware, Virginia, and Pennsylvania, Mr. Drescher’s energetic and creative approaches have earned successful results.
Traditional approaches don’t always work when it comes to collecting payments. Mr. Drescher and his legal team at Drescher & Associates will work side by side with you to find the right solution to your problems. A robust approach from a Baltimore creditors’ rights lawyer can often spur settlement negotiations or even repayment on a defaulted account.
If you are ready to take charge of your claims and get paid, call Ron Drescher today at 410.484.9000, or download his guide for creditors, Maintain the Pressure & Get Paid.