There are many creditors in business who are in constant fear that their debtors will file for bankruptcy and discharge their debt. Bankruptcy is a common threat many debtors make if their creditor pushes them too hard to pay their debt. However, what many creditors do not realize is that debts that arise out of the perpetration of fraud, intentional wrongdoings, and other reasons that are protected by statute, are not dischargeable in bankruptcy (if the creditor takes the appropriate action to protect the debt).
If your debt is a claim that cannot be discharged in bankruptcy you need to take steps to protect what you are owed. You will need to file a complaint to determine the dischargeability of debt in bankruptcy court. The judge will make a decision regarding whether your claim is exempt from discharge. You may also want to file a motion for a relief from the bankruptcy stay. If you sit silent and do not act, your debt will be discharged along with the debtor’s other creditors’ debt.
Therefore, if you are a creditor and are pursuing a debt and your debtor files for bankruptcy and you believe that your debt arose as a result of fraud, intentional misconduct or some other conduct that may be non-dischargeable in bankruptcy, speak with an experienced litigation or bankruptcy attorney about how to proceed to protect your debt.
For more information on how to protect your debt from being discharged by a bankruptcy in California, contact Amiel Wade or any attorney at Wade Law Group at (888) 909-9430 or email Amiel Wade at firstname.lastname@example.org.