Law Office of Rick Morin, PC

Chapter 13 bankruptcy cases contain many important deadlines. Chapter 13 cases can last anywhere from three to five years. The Chapter 13 Trustee issues a “notice of filed claims” after several of these Chapter 13 deadlines. Read on for more information about this critical document.

Creditors Have Limited Time to File Claims in Chapter 13

Debtors reorganize their finances in Chapter 13. This typically means that debtors are repaying some of their debts over time. But which creditors get paid in Chapter 13?

Importantly, only creditors that file formal claims with the court will be paid. Creditors must file their claims within certain deadlines established by the bankruptcy court at the start of every Chapter 13. The court will not pay a a creditor unless the creditor files their claim within the allowed time.

The Notice of Filed Claims Specifies Who Gets Paid What

Your Chapter 13 Trustee will issue a “notice of filed claims” after the claim submission deadlines have passed. The report specifies which creditors filed claims. Here in Sacramento, the report will also specify the nature of the distribution that each creditor should receive over the life of the bankruptcy.

Carefully Review the Notice of Filed Claims

Don’t just assume that the notice of filed claims is accurate. Carefully review the document along with your attorney. Taking an active role in your Chapter 13 case will ensure the best possible result at the end of your long bankruptcy journey.

Typical issues discovered in the report are:

1. Creditor submitting duplicate claims
2. Creditor claiming too much money is owed
3. Mortgage or car creditor not filing a claim that should have been filed
4. Aggregate claims higher than anticipated at the time of filing

Your attorney can resolve these issues. But only if everyone is paying attention. It may be difficult or impossible to resolve these problems if your attorney waits until the last year of your bankruptcy case to take action.

Please call my office you are considering Chapter 13 bankruptcy in Sacramento. You can reach my office by calling (916) 333-2222. Don’t delay.