Creditor Claims

[ohio84]

Hello everyone!

I am new here and filed Ch. 13 on 10/02/06. Thanks to this website I found the National Data Center and have been watching the claims. My question is that my husband has a lot of old debt that has been charged off to collections. They have not contacted him in over 5 years. However, our attorney said that we must include all debt. So I just took the information off of his credit reports. However, the amount due on his credit reports and the amount the collection agencies are claiming is way off. An example is General Audit Corp is collecting on an old medical bill. The credit report listed an amount of $195.00; however, they have claimed an amount of $1,183.18. I have double check all three credit reports and General Audit Corp is only listed once for $195.00. Does this seem normal?? Since we have no bills or statements will the original amount what can we do?

Thank you in advanced.

[SinkingFast]

The difference is probably accrued interest on the original debt, the Collection Agency's fees, and possibly some Legal Fees as well.

The important thing for you is you listed the original debt. Now it's between the Creditors and the Trustee.

Don't worry about the difference. The Trustee will sort out who gets paid how much.

[HHM]

Correct, it is probably just accrued interest and fees. However, will your chapter 13 plan provide any money to unsecured creditors? If not, then you don't need to worry about the amount an unsecured creditor claims. If you will be providing money to unsecured creditors, then you may want to dispute large discrepancies by filing an Objection to Claim. But only dispute if you think you have a valid objection to the amount being claimed.

[aa06a47]

If the penalties/interest occured prior to filing bk, then I would include that amount when I file. If the debt is too old for them to collect, you should note that on the form. One of the reasons you should make sure all claims are accurate is that if your in a less than 100% payback and get some hugh windfall later in life (unexpected inheritance, ect.,) you don't want a bunch of inflated claims getting that money. Plus, inflated claims would raise the payoff in the event you decide later in life to pay off early!

[ohio84]

Thank you for your responses. I am paying 1% to unsecured creditors.

[HHM]

Thank you for your responses. I am paying 1% to unsecured creditors.

If that is the case (although that number usually goes a little higher when the trustee it through with you), then I think you should consider, and discuss with your attorney, Objecting to Claims of certain creditors that appear to have over-inflated their claim.

[ohio84]

[HHM]

When a creditor files a proof of claim, it is usually accompanied by some statement that says how they derived their number. If it doesn't have that statement, or if the statement is very curt, then you probably want to log and objection, and yes, the creditor will have to prove how it derived the number.