Need competent advice on a creditor holding promissory note against debtee filing bankruptcy.?

Question

A promissory note is signed and reviewed the day a contract is signed for services rendered to a client residing in North Carolina. Months into the payment plan stated on the contract and the promissory note, the client files bankruptcy. After receiving the court's letter informing the creditor of the client in question filing chapter 13 bankruptcy, what is the creditor to do? Is the creditor still entitled to property disclosed as collateral for non-payment? Is it secured or unsecured? Is the chapter 13 bankruptcy basically an order for refinance? All help and advice is greatly appreciated.

Answer 1

This will all be decided at the bankruptcy court. Having collateral does typically put you a leg up on other creditors, but nothing is written in stone here. Remember this at election time. Conservatives are more likely to appoint conservative judges who are more likely to side with people like you in cases like these.