Creditors not filing claims

[mrbojingles]

If a creditor does not file a claim on time... they will not get a portion of the plan correct? How many of you out there have had more than one creditor not file claims?

Citibank
Chase
US Bank
Kohls

[PacificBlue]

Waiting to see if this gets answered. (I have no clue).

[drowningNdebt]

typically in a chapter 7 rarely do creditors file claims as there are no assets. on occassion though, some will just incase the trustee finds a few dollars here or there. they will be first to get paid anything but it's rare.

[andy158]

I had a couple of "extra" creditors file claim. Two vehicles I was surrendering were claimed with secured and unsecured portions of their value. 3 filed claim the very last day of the cut off date.

[mrbojingles]

what about ch 13?

what about if file ch 13

[ccfriend]

I filed CH 13 and all of mine filed claims...including American Express for $26.00

[lrprn]

If a creditor does not file a claim on time... they will not get a portion of the plan correct?

That is correct. If a non-secured creditor does not file a claim by the deadline, then they do not receive any payments from your plan. They get nothing.

How many of you out there have had more than one creditor not file claims?

Back in 2006 when we filed, we had a few creditors not file claims. Most of ours did.

[forgotten]

Bank of America missed a $35k claim with me. I assume it was an accident on their part, I also had 2 credit cards (under $8k/ea) which they did file a claim for. A few small medical bills did not file claims, everyone else did.

[mynameainttracy]

We owed state taxes and they did not file. We even got some correspondence from them with late charges, etc. so we called them and told them we filed. They pulled up our records, confirmed they had been notified and said they would file their claim. Never did. In a way it angers me as a tax payer that my state government employees are incompetent and in another way I am glad they are not getting paid. I just hope it doesn't bite me in the butt after our plan is over.

[BKman]

So in a chapter 13 if say only half of the people you owe money to file a claim. What happens to your file? If you were going to pay x dollars for 5 years and half dont put in a claim does you dollar amount change and your time to pay lower?

[mynameainttracy]

In our situation we owed fed/state taxes, the ch 13 legal fees and we put a car in our plan. So our payback is the taxes, legal fees and the car. We do not pay anything to unsecured creditors. They could have not even filed claims with us and it wouldn't have mattered.

[woeisme]

So in a chapter 13 if say only half of the people you owe money to file a claim. What happens to your file? If you were going to pay x dollars for 5 years and half dont put in a claim does you dollar amount change and your time to pay lower?

No, your payment doesn't change, just the % does, unless you get all the way up to paying 100% of claims filed. Then the amount still doesn't change per month, just when you finish your plan.

For example, say you have 100K in debt, and your payment plan is for $500/month for 60 months, which equals $30,000, or 30%. Now let's say that half of the 100K in debt doesn't file claims, so you only have claims for 50K. You still pay the same, you have to pay all of your disposable income, the $500/month, into your plan for 60 months, just like the original plan, just that the creditors that filed claims will now get 60% instead of 30%, and those who didn't file claims get nothing. Doesn't affect you or your payment whatsoever.

Now let's say that you were paying $1000/month for 60 months on that 100K worth of debt, or 60K. Again, only half file claims, so only have 50K worth to pay. Now you would still pay $1000/month, but once the entire 50K is paid, your plan is complete, and you get out of CH 13 10 months early. But unless it works out that you pay 100% of the claims filed, you don't pay any less if a few creditors don't file claims. That's why there is a sticky that is titled something like "% -it doesn't matter" or something like that. Because for most CH 13 filers, it won't matter, unless they get to that holy grail of 100% payback.

[DSIG]

my case's deadline to file proof of claims is next week on the 23rd. The IRS was one of the first to file and they amended their proof of claim 4 times since they cant add. My state's dept of taxation eventually filed and they did not even use the standard form, they filed a memo. Citi filed fairly early, BoA filed very late. The only creditors who have not filed are Pottery Barn and Fortunoff which are owned by WFNNB. My pension fund debt also has not been filed yet, and I was worried that this creditor was going to file an objection to lift the auto-stay due to the nature of the debt (you can read my earlier post for details on this if you are interested), but no objection was ever filed. The sum of the amount filed to date will never get paid 100% from the plan. My plan pays $730 a month and the total claims are about $173k. Hope this helps