Will I be paid if someone who owes me money files bankruptcy?

Whether or not you will be paid by a debtor who files bankruptcy depends, in large part, on two things. First, whether you are a secured, or unsecured creditor, and, secondly, the type of bankruptcy

Whether it’s a Chapter 7, which is a complete liquidation or Chapter 13, which is a consumer reorganization. Or, Chapter 11, which is usually a business reorganization.

It’s important that you do certain things to preserve your right to payment in a bankruptcy case, and regardless of the type of bankruptcy, or the type of creditor that you are, it makes good sense to hire a lawyer to take care of those things for you.