What happens if notice to file claim on cash asset i.e. $10,500 & no creditor makes a claim. Does the U.S. Trustee keep the money or does the Debtor receive it back?
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Although it doesn't happen that often...if the trustee recovers more property than there are claims, I would assume he/she would have to return any excess balance. But honestly, I don't know for sure, but at the same time, I can't think if any legal theroy upon which the trustee would be entitled to keep unclaimed property. The trustee has to close the bankruptcy estate at some point and if there are assets in excess of claims, those assets should be returned to the debtor. -
Thank you HHM as always. If the asset amount is $10,500 & the credit card debt was $25k do the creditor's have to formally file the claim since the "Notice to File Claim" was filed or is it simply distributed.Comment
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Yes, creditors must file a proof of claim in order to get paid. If they don't, they are out of luck, and their debt is discharged.Comment
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