Creditor claims

[Lesa13]

What happens if by the last date to make a claim you have creditors who haven't filed a claim? Even though these people were informed by you/your attorney/the court that they are creditors in a BK and need to file the form?

Is it just tough luck chuck for them?

[BassBoy]

From what I have gathered, generally speaking, a creditor who has knowledge of your case and fails to file a proof of claim will lose its right to receive any payment out of your estate. In a Chapter 7 case, that can lead to a surplus that will eventually be paid back to you. In a Chapter 13 case, that can reduce the amount you will have to pay under your plan or increase the amount that other creditors will receive.

I'm assuming it's their loss.

...........however..........

If a creditor does not have notice or actual knowledge of the case in time to file a Proof of Claim on a timely basis, they will still be permitted to receive a distribution of property of the estate. 11 U.S.C. Section 726(a)(2)(C). However, the Proof of Claim must be filed in time to permit payment from a distribution of the estate. If the assets of the estate have already been distributed, even filing a Proof of Claim would not result in any return to the creditor as a result of having a valid claim.

[Minnymouth]

Bassboy, I see today is the last day of objections for you......
Congradulations...........
HANG IN THERE.......... discharge is on its way, we hope!!!

Your almost to home base..............

[BassBoy]

Thanks Minny,
I just checked PACER and nothing has been filed yet (I'm hoping it stays that way). I'm sweating here. I'm having a difficult time focusing at my job because I'm thinking about it a lot. I told myself I wasn't going to let it get to me like this, but how could I not?

[Minnymouth]

We ALL have spent a lot of sleepless nights over the last few months - waiting it out............

Me - I'm 471 days and still waiting for closing...........talk about longest days of your life......... Been discharged since Oct 2004 and still waiting on closing.....

But keep hanging in there........... Gosh, I'm made of
"good stuff"..................