Proof of Claim/Mortgage

[justbaby]

Well my process has officially started! I have gotten my Meeting of Creditors letter with the dates. I did get a call from my mortgage company today and talked to them and it seems as if they haven't been notified of the bankruptcy yet (filed last Friday) - kinda worries me because I am active foreclosure. I called my atty and the paralegal said she would give them a call. I will check back next week to see if they have been notified. The customer service at the mortgage company kept trying to get me to complete a bankruptcy form but I didn't want to do anything wrong and 'besides, isn't that's why I paid the atty, but I will be sure to follow up.

Proof of claims - how does that process work? The atty pulled my credit report and listed everything in the bankruptcy. I figure that was easiest because I had no idea about some of the creditors on there. Is this form required of the creditors? Suppose they don't respond. does my payment go down?

[LadyInTheRed]

If a creditor doesn't file a proof of claim, that creditor will not get paid. It will only reduce your payment if you are paying 100% to unsecured creditors. If you aren't paying 100%, the failure of one creditor to file a proof of claim, increases what the other unsecured creditors get.

[Rubitout]

Can a tax entity charge interest on arrears amounts while they are being paid back through a Chapter 13 plan? The plan was objected to on the grounds that that the back property tax payments were not accumulating the standard 18% per year for all back property taxes. That adds greatly to the monthly payment amount required to fund a plan.

[NoTomatoCan]

Can a tax entity charge interest on arrears amounts while they are being paid back through a Chapter 13 plan? The plan was objected to on the grounds that that the back property tax payments were not accumulating the standard 18% per year for all back property taxes. That adds greatly to the monthly payment amount required to fund a plan.

Yes, in fact I believe they are statutorily allowed to do so. That is pretty standard (or so I thought). I am surprised your attorney missed that.

We didn't pay our property taxes (due a month before we filed) simply so we could save the $2k or so. Now they get 18% for 5 years while we pay off that $2k. Since all it does is take away from unsecured for us, it doesn't really matter, but if you are struggling to fund your plan 18% is pretty steep.

[Rubitout]

Thanks. It does seem that 18% is a pretty high figure to charge people during a bankruptcy, but if that's it, then that's it.