How can creditors protect their rights in a bankruptcy proceeding?

In New Hampshire, creditors can protect their rights in a bankruptcy proceeding by filing a proof of claim. A proof of claim is a document filed with the court that gives the creditor a chance to be paid back from any assets the debtor is able to distribute as part of the bankruptcy process. This document must include evidence of the debt that is owed, the amount of the debt, and the type of debt, such as a loan or credit card debt. Creditors can also file an objection to the bankruptcy. This allows them to challenge the debtor’s bankruptcy plan if they believe it does not provide them with adequate compensation. If the court agrees with the creditor’s objection, the debtor’s plan may be rejected. Creditors can also request an automatic stay from the court. This means that all collection activities must immediately stop while the bankruptcy is pending. This includes foreclosures, wage garnishments, and other forms of debt collection. Finally, creditors can raise a priority claim with the court. This means they are asking for their debt to be paid before other creditors who have filed a proof of claim. Priority claims typically include child support payments and certain taxes. By following these steps, creditors can protect their rights in a bankruptcy proceeding in New Hampshire.

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