Filing a claim on behalf of a secured creditor

[missfontella]

Has anyone ever had to do this? If you have not seen my previous post, the secured property is my vehicle which had a car title loan on it at the time of filing 3 years ago. I spoke to a paralegal at my attorney's office that said I could file a claim for them so I could get my title back after discharge. She said she was looking for an exact amount (in my file that she hasn't pulled yet) so that she could file the claim because the creditor will not respond to any of the attorney's request for this information.

First of all, I would appreciate any info you can share because the people in my attorney's office are very hard to get in contact with. I'm preparing an email that I'm sure they will not quickly answer. I'd like to be as informed as possible for my one-sided conversation.

Why does the paralegal need the exact amount? So the creditor won't object and want a hearing? If that is the case, why not do that in the beginning and put it in the plan? My plan says that the creditor gets the $2400 I listed (and provided the documents I had) plus 6 point something interest. If she is worried about them objecting, I'd rather overshoot it to $2500. Nobody is going to turn down more money.

I'm also worried that they are giving me the run around because they actually don't know what to do. I don't know how routine it is for the debtor file a claim on behalf of a creditor. But either way, I need to find out as much as I can.

Any help is appreciated. Thanks, you guys!

[MSbklawyer]

I do it quite often. I don't know why secured creditors sometimes neglect to do this, but they do. If there is no proof of claim filed, they are not getting money from the trustee. The money that would be going to pay down your secured debt is instead going to pay unsecured creditors. The secured creditor's lien will survive the bankruptcy, so it is in your best interest to make sure the claim is filed so that when you emerge from bankruptcy you will owe as little as possible on the secured claim.

I make it a practice to calendar the Proof of Claim cutoff date for each client and when that expires, I file proof of claims for each secured creditor who hasn't filed one.

[missfontella]

MSbklawyer, when is the cutoff? The paralegal told me that there was not a cutoff on when I could file a claim. I am 38 months into my plan.

[MSbklawyer]

MSbklawyer, when is the cutoff? The paralegal told me that there was not a cutoff on when I could file a claim. I am 38 months into my plan.

I think it's 90 days after the § 341 date, something like that. I dont have a code book handy at the moment, so I can't look it up. The cutoff date doesn't apply to debtors filing proofs of claims for creditors though. Without looking at the code, as I recall, debtors can file a proof of claim at any time. But the problem is, 38 months into your plan, a lot of money that could have gone to pay down your secured debt has gone to unsecured creditors.

[missfontella]

I think it's 90 days after the § 341 date, something like that. I dont have a code book handy at the moment, so I can't look it up. The cutoff date doesn't apply to debtors filing proofs of claims for creditors though. Without looking at the code, as I recall, debtors can file a proof of claim at any time. But the problem is, 38 months into your plan, a lot of money that could have gone to pay down your secured debt has gone to unsecured creditors.

I still have a few months before it would cut into the secured claim. But you are very right and that is why I am concerned with the time frame in which it will be filed. And most things have to be accepted/processed by the trustee and that adds more time. If it were up to me, they would file the claim first thing next week.

[MSbklawyer]

Turn on ability to receive PMs.

[missfontella]

If memory serves me correctly, I read that the PMs cut on after a certain number of forum posts. I don't see the function on my profile.

[missfontella]

I can't even send them.

[MSbklawyer]

Cat, can you fix this?

[ValleYum]

I think she needs 15 posts... (at least that is how we have them set on another vBulletin forum I mod on).

[missfontella]

Okay, well this post should do it. I also sent a message to the mods. Let's see...

[missfontella]

nope. still says I haven't activated my account and I have. *shrug*

[missfontella]

I give up. I have....

[missfontella]

tried it all. But I figure that if I post....

[missfontella]

at least 20 posts then maybe it will work.