QUESTION
Can a creditor actually receive additional funds than the original claim amount if the trustee discovers more assets?
Asked on Oct 08th, 2016 on Bankruptcy - Nevada
4 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, the most creditors can get in a Chapter 7 bankruptcy is the amount of their claim. Creditors can amend their claim, if they accidentally filed the wrong amount.
Answered on Oct 31st, 2016 at 6:54 PM
1 Award
Yes, in a chapter 7 the creditor can recovery its full claim plus interest on the claim if there are sufficient assets to pay.
Answered on Oct 28th, 2016 at 6:56 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The creditor might receive some interest on his/her/its/their claim if the estate has a surplus. Except in the case of secured claims, it is almost unheard of for a trustee to pay interest on claims.
Answered on Oct 28th, 2016 at 6:55 PM
Are you talking about paying creditors the additional interest that is legitimately owed to them? Or are you wondering if the creditor is entitled to a bonus? The creditor may be able to get interest, but not a bonus. However, your bankruptcy trustee may run up a tab for additional work that will cost you more than you anticipated as a result of finding these additional assets, and the fees to the trustee may be a lot more than you ever dreamed.
Answered on Oct 28th, 2016 at 6:54 PM