Notice to Creditors and Other Parties in Interest
INSTRUCTIONS: NOTICE TO CREDITORS AND OTHER PARTIES OF INTEREST
Receivership is an alternative to bankruptcy that can only be undertaken by businesses, not private individuals. This process places a party, deemed a "receiver," in charge of liquidating the assets of a debtor and supervising the division of resulting proceeds among creditors. This will not eliminate debts.
A Notice to Creditors and Other Parties of Interest is a form that must be published in a newspaper in the county or district where receivership proceedings have been undertaken. The form itself is highly customizable, both from state to state and in the body of text placed within it. The example used here comes from the Montana Bankruptcy Court system but is similar to many others. This form will be filled out after a receiver has been placed in charge of handling this process.
Notice To Creditors And Other Parties Of Interest Step 1: The receiver or business filling out the form will fill out the location of the bankruptcy court which is supervising these proceedings.
Notice To Creditors And Other Parties Of Interest Step 2: The receiver or business will place the name or names of the debtors and businesses in question, along with other relevant information deemed necessary by the court in the applicable area, such as their address or the last four digits of their Social Security Number.
Notice To Creditors And Other Parties Of Interest Step 3: In the blank space provided, an explanation should be provided of the fact that a business is now in the receivership process. This section should provide a date by which creditors should submit their claim for compensation, as well as the mailing address of the receiver in charge of this process.
Notice To Creditors And Other Parties Of Interest Step 4: Depending on where you are completing this process, it may be necessary to obtain the signature of the bankruptcy court clerk overseeing this process.
Notice To Creditors And Other Parties Of Interest Step 5: A copy of this notice should be placed in the largest newspaper in the county where this process is being completed for several weeks. Whether this must be done two or three times in a row will depend on where you are. You may also be required to mail copies to all known creditors.