How do Bankruptcy Procedures Affect the Creditors?

Some creditors believe that resorting to bankruptcy procedures provides a solution to their outstanding problems with their debtors. Others believe that bankruptcy procedures won't only reflect negatively on the debtor, but also on them. As a result they prefer using it as a means of pressure on the debtor to find solutions. BANKRUPTCY IMPLICATIONS THAT AFFECT THE CREDITOR What are really the most important effects of bankruptcy procedures? Specifically, how do they affect creditors, even more specifically the unsecured ones? Understanding this will help you decide as a creditor whether declaring the debtor's will be in your interest, or if you should prefer another method. Here is a list of 6 effects of a declared bankruptcy:

ALL CLAIMS, CAUSES AND INDIVIDUAL ACTIONS ARE CEASED As soon as the bankruptcy is declared, all individual actions against the bankrupt debtor cease, and the relationship becomes directly with the trustee who manages matters in a way that she/he (...) Read more? Sign up for free 6-9-2020

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