List of Creditors

[k4d]

In our initial meeting we provided our attorney with statements from all our creditors. Last week we paid all the attorney fees and court fees to begin the filing. My attorney compiled a list of all the creditors on my credit report and stated the court will contact ALL of them officially. My question is this, why does the Trustee have to contact ALL the past creditors and which one of them gets paid? A vast majority of them are old accounts and paid in full?

Thanks

[rrockinggramma]

In our initial meeting we provided our attorney with statements from all our creditors. Last week we paid all the attorney fees and court fees to begin the filing. My attorney compiled a list of all the creditors on my credit report and stated the court will contact ALL of them officially. My question is this, why does the Trustee have to contact ALL the past creditors and which one of them gets paid? A vast majority of them are old accounts and paid in full?


If the accounts are open accounts, then all have to be listed and contacted by the court. Perhaps your attorney is just being safe and listing everyone on your credit report to cover all bases. The key in chapter 13 is which of the creditors you OWE file claims. Only those who file claims will get any money from the trustee.

[magyar123]

Paid in full creditors will also be notified of your filing primarily to warn them that you're a "deadbeat", and not let you borrow from them any longer.. Imagine filing on Citi or Chase, but having a recent satisfactorily paid off account with Wells Fargo. Wells Fargo "loves" you, they would be happy and willing to lend you again - if they didn't know about your bankruptcy. Since Citi/Chase feel that they got burned they will warn others.

[stljohn]

Paid in full creditors will also be notified of your filing primarily to warn them that you're a "deadbeat", and not let you borrow from them any longer.. Imagine filing on Citi or Chase, but having a recent satisfactorily paid off account with Wells Fargo. Wells Fargo "loves" you, they would be happy and willing to lend you again - if they didn't know about your bankruptcy. Since Citi/Chase feel that they got burned they will warn others.

That a fascinating spin but its not true.

Its not your attorney's job nor the court's job keep all creditors up to date. It is the attorney's job is to make sure he includes all creditors you owe money to.

The creditors who get included in bankruptcy will report that (or worse) to the CB and that's how the other companies find out.

I think there is some over-kill in this case, my attorney asked for a list of all of my creditors carrying my debt and suggested using the credit reports to verify but we did not list all creditors.

After creditors been notified they will file a claim or sell the debt to someone else who will file a claim. The court has some method for determining how the payment gets divided, secured creditors first.