When a creditor obtain a bankruptcy notice and they assume they have neither rights nor alternatives with respect to their claim against the debtor. That is not accurate. When a debtor files for bankruptcy, the creditors are entitled to share in any distribution from the assets of the debtor according to the priority of their claim. Most unsecured, non wage claims come low in the priority scheme, and may receive little or nothing. The creditors have the right to be heard by the court in matters concerning the debtor's plan (in chapters 11, 12, and 13), the liquidation of the debtor's non exempt assets, and payments from the assets of the bankruptcy estate. The creditor has the right to challenge an individual debtor's right to a discharge the creditor’s debt in Bankruptcy Court.

When a creditor receives notice of a bankruptcy claim, they must Cease any and all collection actions. The creditor should stop any telephone calls, billing or law suits that might be pending against the debtor. The automatic stay from Bankruptcy Court protects the debtor and his property from all forms of collection during the bankruptcy. In Chapter 13 Bankruptcy, the stay also protects co debtors on consumer debts. The creditor must file a claim with the court to protect their rights. The notice of the bankruptcy sent by the court clerk informs the creditor where to file the proof of claim and any deadlines. The creditor must act promptly since deadlines are strictly enforced in bankruptcy case.

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