I'm considering filing chapter 13 and someone owes me money and is refusing to return it. Should I let the trustee know about this so that they can go after the person and recover the money? Also, if the trustee recover the money will it reduce my chapter 13 balance?
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If somebody owes you money, that is an asset that you must list on your petition. The question is, what is the value of the debt? That is something you will need to work with your attorney on. The balance of the debt probably is not its value when you are having trouble collecting it.
In a Chap 13, the trustee does not liquidate assets like in a Chap 7. If you cannot exempt the asset, then it creates a minimum that unsecured creditors must receive during the life of your plan. If you have $10,000 in non exempt assets, then your plan must distribute at least $10,000 among unsecured creditors, or if unsecured claims are less than $10,000, 100% of the claims.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent! -
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