Chapter 7

Woodland Hills Chapter 7 Creditor Attorney

Representing Creditors in Chapter 7 Bankruptcy Proceedings

Havkin and Shrago is a boutique business and bankruptcy practice with extensive experience helping creditors protect their rights in bankruptcy. 

If you are a secured or unsecured creditor with a debtor in Chapter 7 bankruptcy, we can help you explore available options to resolve contested disputes and pursue a meaningful recovery of debt. 

Why Choose Havkin and Shrago?

  • Led by a Dual-Certified Consumer Bankruptcy and Bankruptcy Law Specialist (Stella Havkin)
  • Award-winning attorneys with more than 70 years of collective experience
  • Interdisciplinary insight in bankruptcy, business, securities, tax, real estate, and related law 
  • Personalized counsel with an emphasis on custom-tailored solutions

Have questions about your rights as a creditor? Call (818) 600-6240 to speak with a Woodland Hills Chapter 7 creditor lawyer. Havkin and Shrago serves clients across Los Angeles, Santa Barbara, and Southern California.

Creditors in Chapter 7 Bankruptcy: Steps to Take

Creditors with insolvent clients should take immediate steps to protect their rights when they anticipate or are notified of a Chapter 7 bankruptcy filing. 

As with other chapters of the Bankruptcy Code, including Chapter 11 and Subchapter V bankruptcies, Chapter 7 provides important protections to debtors and special rules and procedures by which creditors must abide. This includes the automatic stay, which bars collection efforts upon the filing of a petition, and the need to comply with court processes involving document submissions and the filing of claims, motions, and more.

At Havkin and Shrago, our experience representing debtors, trustees, creditors, and other participants in bankruptcy proceedings allows us to provide insightful guidance to creditors who face considerable challenges and significant consequences arising from a debtor’s bankruptcy. 

For creditors in Chapter 7 cases, we can provide support for:

  • Proof of claim filings
  • Defense against trustee claims
  • Defense against preference actions 
  • Discharge objections / nondischargeability claims
  • Other adversary proceedings 


Examples of Our Work 

  • Prevailed on summary judgment in a nondischargeability proceeding for breach of fiduciary duty arising out of a defalcation.
  • Represented Chapter 7 Trustees in highly contested cases requiring the litigation of several adversary proceedings and numerous motions, including motion to withdraw reference.
  • Represented 25 preference and fraudulent transfer defendants in a medical bankruptcy.
  • Represented creditors who obtained the permanent bar of a debtor from the filing of a bankruptcy proceeding before the Bankruptcy Court.
  • Represented petitioning creditors in the defense of attorneys’ fees trial following the dismissal of the involuntary bankruptcy, followed by two appeals to the Ninth Circuit Bankruptcy Appellate Panel and the Ninth Circuit Court of Appeals.
  • Represented a creditor who successfully removed his interest from a sale of assets by a Chapter 11 trustee to a buyer of those assets of the Debtor.
  • Represented creditors in complex collection matters.

What to Do When a Client Files Chapter 7 Bankruptcy

Creditors have important rights and remedies to avoid continuing losses and position themselves to recover debts. Protecting these rights begins with taking steps to:

Stop goods in transfer. Creditors have the right to stop supplies in transit that have not been delivered or prepaid. Shipments received by debtors can become part of the bankruptcy estate unless creditors exercise reclamation rights.

Cease all collections. Debtors in bankruptcy are protected by the automatic stay that orders creditors to stop all collection efforts. Violations of the automatic stay can result in litigation.

Preserve documentation. Creditors should preserve and organize documents related to their relationship with a debtor for use in creditor meetings or any future litigation.

File proof of claim. Creditors with unpaid balances that aren’t listed on a debtor’s schedule of obligations, or are erroneous, disputed, or contingent, should file a timely proof of claim to preserve the right to payment. 

Get in line. The Bankruptcy Code prioritizes certain debts for repayment, beginning with secured debt. If you are an unsecured creditor or a secured creditor with exposure to lower priority payment, you may need to explore options for recovering payment through nondischargeability claims, discharge objections, and other adversary actions. 

Consult an attorney. The most important step creditors can take when notified of a debtor’s bankruptcy is to seek the counsel of an experienced lawyer. Attorneys with experience in this area can guide you through the process and evaluate your available options.

Call (818) 600-6240 to speak with a Woodland Hills attorney about your rights as a creditor in Chapter 7 bankruptcy. Havkin and Shrago offers FREE consultations and serves clients across Southern California.

    "Stella was terrific. Very informative and prompt with her responsibilities."

    - Craig

    "The bankruptcy process can be complicated and confusing and she always makes sure to explain everything in great detail so you are able to follow the process."

    - Nelike

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    We have over 30 years of experience in bankruptcy and business law.
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