Get B1 (Official Form 1) (4/10) United States Bankruptcy Court District Of Puerto Rico Name Of Debtor

What should a creditor do now? Cease any collection action, including telephone calls, billing or law suits that might be pending against the debtor. ... File a claim with the court. ... Consider whether your claim is dischargeable.

Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court.

Your trustee only has control of your estate until the bankruptcy is complete. However, if something was in progress during your bankruptcy and you don't collect the money until later, your trustee could still gain access to it.

Creditor Rights The right to sue the borrower for the amount owed. The right to seize the borrower's property if the debt is secured. The right to report the debt to credit reporting agencies. The right to hire a collection agency to collect the debt.

If the debtor company is in possession of goods belonging to a creditor, and the creditor can prove ownership, they have the right to make a claim for their return, or reimbursement via the liquidator. Unsecured creditors can claim interest on the debt up to the date of liquidation under certain circumstances.

Creditors with liens on property are entitled to receive value that is equal to the debt or the collateral—whichever is less. They can also stop a debtor from using cash collateral and collect money from a trustee's use of secured property that lowers its value, as well as attorneys' fees and interest that arises.

Bankruptcy Can Stop Creditor Harassment and Collection Activities. Once you file, the court issues an order called the automatic stay. The stay stops most creditor calls, wage garnishments, and lawsuits, but not all. For instance, creditors can still collect support payments, and criminal cases will continue.

Puerto Rican national debt is now approximately $74 billion, but unlike mainland municipalities, Puerto Rico is not protected by Chapter 9 of the U.S. Bankruptcy Code and cannot file for bankruptcy.