Creditor Categories
The existence of credit and money-lending has made it possible for persons to make large purchases without having the entire balance of the purchased item on hand at the point of sale. This system makes it easier for persons to make large purchases like homes, automobiles, and expensive electronics and repay the lender over time.
Unfortunately, if a person fails to repay his or her creditors, he or she may face negative actions like foreclosure, repossession, and damage to the individual's credit rating. If a person falls seriously behind on payments to creditors, bankruptcy may be the best option for discharging harmful debts and gaining a fresh start. For assistance with your bankruptcy claim, contact the Austin bankruptcy attorneys of Slater, Kennon & Pugh Ltd.LLP at 512-338-1100.
The Many Categories of Creditors
When it comes to bankruptcy proceedings, there are several different categories of creditors, including:
- Secured creditors who hold liens on the debtors' property
- Unsecured creditors who have no interest in the property of the debtor
- Judgment creditors who have been awarded interest prior to the bankruptcy filing through a lawsuit or official ruling
- Administrative claim creditors like attorneys and accountants who are owed money for assisting with the bankruptcy filing
- Super priority creditors who are awarded special importance through the bankruptcy proceedings
- Post-petition creditors who are owed money by the debtor for money borrowed after the bankruptcy filing
Contact Us
If you or someone you love is considering filing for bankruptcy, contact the Austin bankruptcy lawyers of Slater, Kennon & Pugh Ltd.LLP at 512-338-1100 to discuss your legal options.