QUESTION
Does a Notice of Withdrawal of Proof of Claim means that they can try to collect from me once the bankruptcy is discharged?
Asked on Dec 10th, 2014 on Bankruptcy - Michigan
More details to this question:
I received a letter from a creditor stating Notice of Withdrawal of Proof of Claim without prejudice to re-file at a later date.
11 ANSWERS
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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Not necessarily. Without prejudice means that they reserve the right to file a different one. Sometimes proof of claim is withdrawn because it was filed in error. If there was an error in the proof of claim typically the creditor rather than withdrawing the original will file an amended one to correct the mistake. Of course, you as a debtor, have the option to object to any proof of claim, provided of course there is a basis for doing that, such as if the claim is incorrect for some reason.
Answered on Dec 11th, 2014 at 2:43 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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A proof of claim (POC) is the form creditors file to receive payment in a bankruptcy when there is cash to be distributed, for example in Chapter 13 or those Chapter 7s where the debtor has some assets which the trustee can sell. For some reason, this creditor wanted to take back the POC which it had already filed in my case but it might file an new POC in the future. POC have little to do with the debtor and NOTHING to do with whether the debtor will receive a discharge. It's possible that the debtor might receive some money if few creditors file a POC and there is money left over after all of them have been paid (don't get your hopes up, this is pretty rare).
Answered on Dec 11th, 2014 at 2:42 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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As long as you receive your discharge and the debt is dischargeable, the creditor cannot collect against you after bankruptcy. A Proof of Claim is required to receive a payout in your bankruptcy, not to determine dischargeability.
Answered on Dec 11th, 2014 at 11:45 AM
No, a notice that the claim has been withdrawn indicates that the creditor does not intend to get paid through the bankruptcy. If the debt is secured, the creditor will be able to repo or foreclose on the property securing it after a discharge has been entered but cannot seek additional money from you as payment on the underlying debt. Only if the property is not eligible to be discharged, such as a tax debt, child support, or alimony, or the creditor successfully brings an adversary action, such as under 11 USC sec 523, will the creditor be able to collect from you personally. Withdrawing the poc has nothing to do with a debt being eligible to be discharged.
Answered on Dec 11th, 2014 at 11:44 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No, if they do not take through the Bankruptcy, they can not after same has been discharged try to collect outside.
Answered on Dec 11th, 2014 at 10:27 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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No. The withdrawal of a claim does not give a creditor the right to attempt to collect a debt after discharge.
Answered on Dec 11th, 2014 at 10:26 AM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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Probably not. It may mean the lender made a mistake in the initial proof of claim or counsel isn't sure the debt is actually owed at the time of filing. Either way, it's probably not cause for alarm since there will be no present claim to review. If a new proof of claim isn't filed before the claims deadline, the debt will be discharged without any payment if it is a dischargeable debt (e.g., not a student loan or recent tax obligation). If it is indeed dischargeable, it will be uncollectible under the discharge order and any attempts to pursue it will be actionable on a motion to reopen the case. But I would suggest you discuss all this with your lawyer. This is why you hire one.
Answered on Dec 11th, 2014 at 10:19 AM
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Withdrawing a claim means the creditor does not have a claim.
Answered on Dec 11th, 2014 at 10:19 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Not to worry. So long as you listed them as a creditor, your discharge will cover their claim (with or without a proof of claim on file).
Answered on Dec 11th, 2014 at 10:19 AM
No they can not do that.
Answered on Dec 11th, 2014 at 8:08 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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No, but for your own sake get counsel.
Answered on Dec 11th, 2014 at 7:42 AM