Creditor's claim

[Thingshappen]

Hello again. I am curious to know if anyone got a substantial amount of debt not claimed by the creditors before the 90 days deadline? Also, why would a creditor not make a claim at all? thanks.

[justbroke]

It varies, but some have had tens of thousands of dollars of debt not be claimed. Personally, I think mine was somewhere between $20-30K not claimed by a couple of major banks.

[shipo]

In my case, 100% of my debt was claimed.

[Thingshappen]

Ok. Hypothetical example. Let's say my total outstanding debt is $90k but the total debt claimed is $60k. Let's also assumed that in a 100% plan the payment would be $1,000 per month, ballpark (excluding fees). So if I get a salary increase after or a substantial bonus, would the trustee want to claim them too even though I am already on a 100% plan? Sorry for asking so many questions. Just trying to understand this process.

[justbroke]

For those in a 100% plan you may be encouraged to apply a windfall to the balance of the plan, but generally not for salary-related increases. There's nothing in the code that says you have to propose a plan that pays 100% "quickly" but some Trustees may look to the windfall part of the code should you win the lottery or inherit property.

In your specific scenario, the Chapter 13 Standing Trustee and your attorney may encourage you, at confirmation, to pay a higher monthly payment. They encourage you by showing that you'll pay off the 100% quicker. If they do, just ask your attorney if you're required to do so. Back to your example, if it was going to be $1,000 month over 60 months to pay the $60,000, but only $30K in claims come in, then you really only need to pay $500/month but they may encourage you to pay $1,000K/month to be done in 30 months.

Ask as many questions as you like. You're helping those that have the same questions, but do not want to ask.