Question on Claims

[bling32]

I was carefully examining the claims that were filed in my case. I noticed that both an original creditor and a collections agency both filed for the same bill. In my case it really does not matter b/c it is a 0% plan but I wanted to ask in case someone else finds themselves in this situation. Because this could lead to a duplicated payment for the same charge if someone was in a 100% plan.

[despritfreya]

Normally a Trustee will review claims and object accordingly. However, in a 100% Plan, debtor's counsel (or the debtor, if not represented) needs to examine the claims for this very reason.

If a duplicate claim is filed the first thing I do is call to see if the creditor (or collection agency) will simply withdraw it. I give it 10 days. If no withdrawal I then file an objection to the later filed claim.

Des.

[frogger]

Normally a Trustee will review claims and object accordingly. However, in a 100% Plan, debtor's counsel (or the debtor, if not represented) needs to examine the claims for this very reason.

Des.

As Des stated, normally the Trustee will review, object, and disallow the claim. The trustee normally will allow the claim from the original creditor and kick out any claim from someone collecting for the original creditor.

It's not uncommon for this to happen, but you (and your attorney) do need to be pro-active in looking out for your best interests.

[IamOld]

Des hello! This is a GREAT question from the OP = Is there a time-frame to do this? In my spouse's 13, there is a claim from one of MY (only mine) credit cards from a JDB who bought it from another JDB...so the court clerk sent them a notice of a "name mismatch" - is it possible that she (clerk) will reject it therefore?

And/or is there a proper time to go through all the claims and flag ones that are not correct and/or duplicates?...in the spouse's 13 8/15/11 is the deadline for all non-gov't claims (ALL fingers crossed :-)

[despritfreya]

Is there a time-frame to do this? In my spouse's 13, there is a claim from one of MY credit cards from a JDB who bought it from another JDB...so the court clerk sent them a notice of a "name mismatch" - is it possible that she (clerk) will reject it?
And/or is there a proper time to go through all the claims and flag ones that are not correct and/or duplicates?...in the spouse's 13 8/15/11 is the deadline for all non-gov't claims

1. I tend to doubt that the Clerk would be the proper party to object to any claim. The Clerk is probably just asking for clarification.

2. There is no time limit in which to file an objection to a claim, however, objections by a debtor should be filed prior to plan confirmation when possible. The Order confirming is binding, not only upon the creditor, but also upon the debtor. Unfortunately, many plans are confirmed before the bar date passes. As a result, I take the position that objections by a debtor should be filed prior to confirmation for any claim already on file but not for timely claims that happen to be filed after the Order confirming is signed. To me, a debtor cannot be bound by the Order confirming if he/she has not had the opportunity to review claims. (A wee little thing called “due process”). As it relates to a Trustee, he/she will not be objecting until the plan is confirmed since he/she does not officially get into the “review” process until he/she is called upon to make a distribution.

Des.

[IamOld]

Thanks you Des!!!!!!!!

Well the plan was confirmed (thank God) 2 days EARLY! Claims submitted until then are ok.

There is only 2 issues (so far) - the claim that is NOT my spouse's and the fact that GE Bank is in there twice - once as secured on which Trustee has already listed them as being paid $x/mo pursuant to the plan, and then GE Bank submitted it as unsecured - so it's on there twice...claims bar date is the 15th...so if that passes, can I then advise atty to object/check on these two?

1. I tend to doubt that the Clerk would be the proper party to object to any claim. The Clerk is probably just asking for clarification.

2. There is no time limit in which to file an objection to a claim, however, objections by a debtor should be filed prior to plan confirmation when possible. The Order confirming is binding, not only upon the creditor, but also upon the debtor. Unfortunately, many plans are confirmed before the bar date passes. As a result, I take the position that objections by a debtor should be filed prior to confirmation for any claim already on file but not for timely claims that happen to be filed after the Order confirming is signed. To me, a debtor cannot be bound by the Order confirming if he/she has not had the opportunity to review claims. (A wee little thing called “due process”). As it relates to a Trustee, he/she will not be objecting until the plan is confirmed since he/she does not officially get into the “review” process until he/she is called upon to make a distribution.

Des.

[despritfreya]

GE Bank is in there twice - once as secured. . . and then GE Bank submitted it as unsecured - so it's on there twice...claims bar date is the 15th...so if that passes, can I then advise atty to object/check on these two?

Yes, but just remember that, unless you are paying GE Bank in full as a secured creditor, the portion that is not being paid as secured is properly listed (and paid) as unsecured. So, make sure that second claim is not simply the bifurcated unsecured portion of the debt.

Des.

[IamOld]

Thanks! GE is actually secured...you know we're pretty close to the limit - so they just filed a claim as unsecured...so there is a double-claim entered for them. Same amount twice.