Types of Creditors
Modern America encourages its citizens to purchase things that they cannot afford. With successful advertising, millions of people make a habit of spending beyond their means to acquire a new car, home, or television. In order to purchase these expensive items, people must rely on credit. Instead of paying the full price upfront, they borrow the money from a creditor, and then pay them back with interest over time.
Falling behind on payments can have serious consequences. Delinquent payments can cause foreclosure, repossession, or a damaged credit score. If your debts get out of hand, the best option may be to file for bankruptcy. For assistance with your bankruptcy claim, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates. Call 561-353-2800 to schedule a free initial consultation.
Creditors
In the lending world, there are many different types of creditors who may help you finance your purchases. When filing for bankruptcy, your attorney may help you determine what type of creditors you are in debt to.
- Secured creditors: Hold liens on debtor’s property
- Unsecured creditors: Do not have an interest in property and are generally not a priority
- Judgment creditors: Entitled to money or property by a court proceeding
- Administrative claim creditors: Attorneys or accountants who have assisted in the bankruptcy process
- Super priority creditors: Debts to these creditors are considered a high priority for repayment
- Post-petition creditors: Loaned money to the debtor after they filed for bankruptcy
If you are considering filing for bankruptcy, it is important to understand what kind of creditors you have and how this will affect your claim.
Contact Us
For more information and assistance about making a bankruptcy claim, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates at 561-353-2800 to discuss the details of your case.
