Are All Creditors the Same in NY?

Creditors in NY

In regards to debt, you can owe money to secured and unsecured creditors. Secured creditors have the right to seize your property. An unsecured creditor can file a case and get a judgment against you. Claims for child support take precedence over the payment of all other debts. In NY, the skilled Brooklyn bankruptcy lawyers can help protect you against the claims of these creditors.

How Creditors Work

Both secured and unsecured creditors can file a lawsuit against you to recover the debt they believe you owe. Don’t make the mistake of ignoring a summons, or a default judgment could be issued against you. Creditors usually hire attorneys to file their claims. For this reason it is important to have a Brooklyn bankruptcy attorney to back you up.

Some Important Things to Know About Dealing with Different Creditors

Remember that it’s illegal for creditors to hide their identity through “spoofing”. The creditor must prove that you owe the debt; the burden of proof is not on your shoulders. Debts also have a statute of limitations. If the statute of limitations on your debt has expired, you don’t have to pay.

Know Your Rights

A Brooklyn bankruptcy attorney can come to your aid. Creditors cannot harass you, threaten unusual action or collect fees in excess of the debt. They cannot imply affiliation with a government entity or send your papers that look like court documents. If a creditor informs your employer about your debt before a judgment is issued, then he is violating your rights. Brooklyn bankruptcy lawyers can defend you against unscrupulous creditors.

How an Attorney Can Help

Ursulova Law Offices can evaluate the strength of the creditor’s claim. They can help you exercise your rights and defend yourself. If the lawsuit goes to court, they can represent you or file a counterclaim if the creditor’s harassment has caused you financial damages.