Understanding Bankruptcy

Rights & Duties

Debtors are entitled to request copies of all related paper work regulating and defining their relationship with each creditor. Article 9 of the UCC provides that each debtor can request confirmation of the debt or accounting of activities associated with the debt. In addition the debtor is entitled to have a statement of termination filed when collateral is perfected with filing. Debtors must maintain an open communications with their creditors regarding payment details. Although not required by law, it is highly recommended that all communications be handled via regular mail.

Moreover, debtors are encouraged to be proactive in handling all debts they acquired. If matters reach the court, creditors can use debtors' actions for their benefits. Using procedural law, creditors can easily win their case and obtain judgment without having the court examine any of the circumstances attached to the case.

Debtors' credit history may also play a factor. Creditors will not negotiate terms of debt with borrowers who have a history of defaulting. Moreover, good credit history is an important key for a successful court filing against creditors. In regular lawsuits, the court representative will examine debtors' credit history to make findings. As for bankruptcy filing, trustees investigates credit history in order to lift exemptions on debtors' property.