341 Telephonic meeting in NC

[Cronin]

Okay good to know. Thanks again!

[Cronin]

Do you know why a creditor would file a “proof of claim” in a no asset Chapter 7? The docket shows a link to “claims register” and one creditor entered a claim. I didn’t think they did that in “no asset” cases?

[justbroke]

Just because a case is "no asset" does not mean that claims will not be filed.

Claims are often sold to junk debt buyers (JDBs). They purchase these massive bankruptcy portfolio for 10 cents or less on the dollar (usually a lot less). They then use computer automation to file these massive claims in bulk in bankruptcy cases. Sometimes, they get a hit with asset cases and it's apparently enough of a business that they make a lot of money from this.

[Cronin]

Oh wow I didn’t know that! There’s so much behind the scenes in these cases. Thank you!