QUESTION
Will I now be required to pay the other creditors in full since the bank never filed the unsecured claim?
Asked on Aug 28th, 2013 on Bankruptcy - Colorado
More details to this question:
I am 24 months into a Chapter 13 that has me paying 36% of my debt for 60 months. The reason I went into the plan was because of an investment property that went bad. When I filed the plan, the foreclosure process on the investment property was put on hold. The bank filed a relief from stay on the property which was granted. My plan was confirmed with a statement in it that I had given up the secured debt/property and that the bank had the option to file an unsecured deficiency claim. They only filed a secured claim and never came back to file the unsecured claim. I have now paid off the other creditors in the 24 months (only 36%). My plan has gone into an "eligible for audit" status and I am wondering what is going to happen. Will I now be required to pay the other creditors in full since the bank never filed the unsecured claim? My attorney thinks I am in the clear, but wouldn't confirm and basically said to wait it out and see what the trustee does. Any thoughts? Sorry for the long explanation. Thanks.
6 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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I would wait and see if your trustee takes any action. That is all that you can do.
Answered on Oct 15th, 2013 at 1:22 AM
If you were over median income when you filed, you are required to be in a 60 month plan. If you were under median, then you are required to be in at least 36 months. The only way you get out early is if you pay 100% of your allowed unsecured claims. If the other creditors have only been paid their 36%, I would expect the trustee to adjust your plan accordingly and begin paying the other creditors more than 36%.
Answered on Sep 03rd, 2013 at 11:56 AM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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Creditors must file the appropriate proof of claim in a chapter 13 to be paid. The practice of a particular chapter 13 trustee may differ, but it appears that you have complied with the required payments under your plan. (Plans in South Florida are not based on a set percentage of debt payments.)
Answered on Aug 30th, 2013 at 5:07 AM
So why didn't your attorney object to the claim of this creditor and/or file a claim on their behalf?
Answered on Aug 29th, 2013 at 12:58 PM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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We really cannot comment on something like this because another attorney is involved, the attorney knows all the facts, etc. Second guessing another attorney is not a smart thing. I personally believe that you're going to end up paying your disposable income for 5 years. I am also very confused why you didn't let them foreclose on the property if you were not going to keep it. My final thought is that if you wanted to keep the investment property, relief from stay doesn't do anything, you could have kept it through the plan. So I don't know what all happened. If you really need some outside advice, you have to pay someone to come in for the sole purpose of making sure your 13 went the way it should have.
Answered on Aug 29th, 2013 at 11:24 AM
Deborah F. Bowinski
These types if issues can vary greatly from one jurisdiction to another. Your attorney is the best one to advise you. It sounds as though it will depend upon the trustee's review if the case. Here in Colorado, unless your plan is modified in some way, you would be required to finish out your plan payments up to the point where all claims were paid in full or until your 60 months, whichever comes first.
Answered on Aug 29th, 2013 at 11:22 AM