Creditor Cliams question

[DUMBAGAIN]

So we have to pay back 100%. One of my friends said when they filed information was sent to all creditors but only a couple repsonded back, thus those were the only ones she had to payback. How does that work with a 100% payback plan?

[DebtSlave]

I am paying 100% to those who filed a claim.

[DUMBAGAIN]

so if they don't file a claim I don't have to pay them? Or does money automatically go to them anyway?

[ThreadsSnapping]

No claim = no money. If they want to get paid they have to file a claim and provide proof that they are owed money. Some creditors just don't bother filing a claim and just prefer to write it off.

TS

[DUMBAGAIN]

So, even if I may not be granted a discharge since we are required to pay 100%, they can't come back later and get me?

[rrockinggramma]

In your case, you might want to file the claim for them because you will not receive a "discharge" per say. What the creditors will do is once your case is done, add on all the late fees and interest to your bill. If they file a claim, they can not add on any interest or fees or penalites and they will receive what the trustee pays them when the trustee pays them.

So in YOUR case I would make sure ALL of your creditors file a claim so after you are done, you will not owe any of your creditors (who cannot collect while you are in your chapter 13 so that is how they "accrue" all those interest charges and fees etc to hit you with after your plan is completed)

[ThreadsSnapping]

Once the plan is complete there is a discharge and all debt listed is discharged. They had their chance and they decided to ignore it. They can't come back after you for anything once the plan is completed and you are discharged. So if they were listed and decided to not file a claim and you complete your plan, then they are screwed and they can't go after you for money from you for that debt ever. But if the creditor was NOT listed then they are not part of the bk and can go after you for payment outside of the bk and plan.

Now if the plan is NOT completed and your case is dismissed then yes they can come back and add all their fees and penalties.

TS

[HHM]

In your case, you might want to file the claim for them because you will not receive a "discharge" per say. What the creditors will do is once your case is done, add on all the late fees and interest to your bill. If they file a claim, they can not add on any interest or fees or penalties and they will receive what the trustee pays them when the trustee pays them.

So in YOUR case I would make sure ALL of your creditors file a claim so after you are done, you will not owe any of your creditors (who cannot collect while you are in your chapter 13 so that is how they "accrue" all those interest charges and fees etc to hit you with after your plan is completed)

Woooooo, slow down.

That is mostly wrong.

If a creditor does not file a claim, they don't get paid by the trustee.
If an unsecured creditor does not file a claim, it does not matter, the debt IS discharged when you receive your chap. 13 discharge, you wont have to pay it. If the debt is non-dischargeale (i.e. IRS, student loan etc), then you may want to file a claim on behalf of the creditor assuming it is part of your plan to pay down some of that debt during the chapter 13. Proof of claims for Secured debts don't normally matter because you don't want to pay secured debts via a chapter 13 unless you have too (i.e. cram down a car).

Thus, unless there is an aspect of your plan that requires the full 5 years, if you are in a 100% payback and not all your "unsecured" creditors file claims, then the lifespan of your chapter 13 is shortened. Those unsecured creditors that did not file claims are out of luck. There debt is discharged.

[rrockinggramma]

The OP does NOT qualify for a discharge because of a previous BK filed within the 4 year time frame.

Therefore if those claims are NOT filed, the OP WILL OWE them once the plan is "done" NOT DISCHARGED

This is the OP"S original post:


I do understand what your saying however, we want to pay it all back. There are many reasons we feel that way, hard to detail here, but we want to. I did go to see the lawyer today and we can do just that, we will pay 100% back, however we will be protected from futher collection actions. I do have a question however, which I asked the lawyer and he said yes, but I wanted to double check. Not that I want to make anymore bills, however my job is somewhat pressuring me to finish my degree. We do have tution reinbursment, however it won't cover the entire amount needed to finish. I would need to take out some student loan to accomplish this. If not it would take me 8 years to be done. The lawyer said that student loans can be taken out during a 13 with the courts approval and he does that often for people. What do you think? Also what if you need a new car during your payback period? He said its the same deal, but is that true? Thanks Dumbagain

[HHM]

The OP does NOT qualify for a discharge because of a previous BK filed within the 4 year time frame.

Therefore if those claims are NOT filed, the OP WILL OWE them once the plan is "done" NOT DISCHARGED

This is the OP"S original post:


I do understand what your saying however, we want to pay it all back. There are many reasons we feel that way, hard to detail here, but we want to. I did go to see the lawyer today and we can do just that, we will pay 100% back, however we will be protected from futher collection actions. I do have a question however, which I asked the lawyer and he said yes, but I wanted to double check. Not that I want to make anymore bills, however my job is somewhat pressuring me to finish my degree. We do have tution reinbursment, however it won't cover the entire amount needed to finish. I would need to take out some student loan to accomplish this. If not it would take me 8 years to be done. The lawyer said that student loans can be taken out during a 13 with the courts approval and he does that often for people. What do you think? Also what if you need a new car during your payback period? He said its the same deal, but is that true? Thanks Dumbagain

LOL

Gold star to rrockinggramma for following the OP's story. Yes, it was a very important fact about how this is a chapter 13 that is not eligible for discharge. Again, this goes back to my post in your other thread, wait the "f'ing" few more months to hit the 4 year mark so you can get a discharge. You WILL ABSOLUTLY NOT get any brownie points for "trying" to pay. What ever reasons you think you have for wanting to pay this debt back in full don't mean anything to your creditors.

[DUMBAGAIN]

I'm not trying to earn "brownie points" I'm trying not to get sued. That's really my reason for filing now. We absolutly don't want to be served a summons!!

[HHM]

How many more months do you have until 4 years?

Being served is not that big a deal, you will still have 20-30 days to respond, if you respond, it will easily be another 2 months before anything else will happen in the case.

Try and hold out, it is far more in your interest given your circumstances to wait until you can receive a discharge.

[DUMBAGAIN]

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