Question re: debts declared vs claims filed

[GoingUnderInNV]

Hi, all! I have a basic question regarding the debts I filed against in my C13 vs claims made by those creditors. If all creditors don't file a claim within the 90 day window, does that mean that that declared debt is taken from the bottom line of what I will be paying back? I haven't been able to find a solid answer to this yet, and wondered what other C13's experience has been in this situation.

[GoingUnderInNV]

Confirmation hearing results quiet...

Dplicate post... sorry!

[SinkingFast]

I'm not real good with Ch 13, but here's what I think happens,..........

Unless you're in a 100% pay back plan, it probably won't affect your monthly payments or the total amount you pay.

Once the Trustee has all the claims from the Creditors, he/she takes your payment and divides out pieces of the pie. Secureds get paid first. Unsecureds get what's left over.

If your total plan payments add up to more than the claims, your plan may be reduced by however many months, but it's not likely that your monthly payment will be reduced. In Ch 13, you're supposed to pay all disposable income to the plan.

[GoingUnderInNV]

SF, thanks for replying. Yeah, I knew the monthly payment wouldn't be reduced; that's not a concern. I was wondering, however, if either a) the payment schedule would be reduced (cut back to -x- months plan vs. the 60 month plan), or if b) I would be REQUIRED to continue the 60 month plan, even if 100% payback would be completed in shorter time.

At this point (half-way point between filing and 90-day claim limit) only one creditor has filed a claim, and that's only for about $4500 (a bit more than 10% of the total unsecured I filed C13 against).

[SinkingFast]

I'm not really sure, GUIN.

Aa was asking the same question recently. Sorta. Aa had a Preferential Payment come in from a Creditor who did not even make a claim in Aa's BK.

Here's a link to that thread:

http://www.bankruptcyforum.com/showthread.php?t=11042

Now that the dust has settled on Aa's plan, it's looking like Aa will be paid up several months early.

It makes sense that once your Secureds are paid in full and any Unsecureds that filed a claim, you'd be done.

[rrockinggramma]

In a chapter 13 the base plan is 36 months. If a creditor does NOT file a claim, then they are out of luck and that debt is discharged at the end of your plan. I will use my case as an example. I filed on roughly 16,000 unsecured (had some secured) but that was the unsecured. My original pay back percentage was 10 percent but the trustee upped it to 35.67 percent. Of the 16,000 listed as unsecured claims filed totaled to about 5000.00 On the 13Network website, it says I have only 9 months left and in that time all 5000 of my unsecured would be paid off. But that was only at 35.67 percent, so to meet the base plan requirement of 36 months, I will have to pay for 36 months and those lucky ducks that filed a claim will be paid back more. If no claim was filed, they lose out totally. So your plan will have to run at least 36 months. The trustee will simply increase the payout so your plan will run that long (unsecured filed claims will get more) but IF your plan is set up at 100 percent payback to unsecured, and you complete it prior to the 36 month mark, then you will be discharged. However, I bet the plan is set up to go at least 36 months.