Did all your creditors file claims?

[Flamingo]

lrprn is correct. You will probably find that your smaller creditors to which you owe under a $1,000 or less will not file a claim...that doesn't mean they won't in your case, but it usually costs them more to handle the matter than it would to collect.

[lrprn]

I just read a thread and she said that some of her creditors didn't file claims. My question to all of you that are confirmed in a ch 13 repayment program: did all your creditors file claims? Why would the creditors not file a claim? Seems weird.

Frankly it's really anyone's guess which of your creditors will decide to file claims and which ones won't.

In our case we had about 20 unsecured creditors. About 2/3 filed claims. One of our biggest credit cards (over $12K owed) didn't bother, and one of our smallest credit cards (about $150 owed) did.

We had absolutely no control over who would decide to file claims and who wouldn't, so I didn't worry about it. It was going to be what it would be. When the dust settled, we will be paying back about a third of the total we owed our non-secured creditors who filed claims.

I believe that for some creditors, the special bookkeeping and extra internal processes and personnel required to accept and keep track of the sometimes irregular disbursements from Ch 13 trustees ends up costing more than the portion of the debt they eventually get repaid. Some creditors feel they come out ahead in the long run not filing a claim and just writing the debt off or selling it off quickly to a third party who doesn't realize you've filed.

[liz417]

Hi all,

I just read a thread and she said that some of her creditors didn't file claims. My question to all of you that are confirmed in a ch 13 repayment program: did all your creditors file claims? Why would the creditors not file a claim? Seems weird.

I may be getting my hopes up for nothing

Thanks!