Creditors who don't show up in Chap 13?

[bobcat10101]

I'm curious to find out from Chap 13 bk'ers about the percentage of your creditors who showed up for your BK Settlement. If you could name which creditors didn't make a claim, I would really appreciate it. If your total unsecured debt was this much, how much of it was placed into the settlement? Thanks in advance.

[justbroke]

There's no way to make a list. Most creditors sell the debt, after a Chapter 13 bankruptcy is filed to companies like B-Real, LVNV Funding, Roundup Funding, Resurgent Capital, eCast Settlement and others. There is no way anyone can tell you which creditors don't file in a Chapter 13. It's part luck. In some cases every single creditor comes out of the woodwork (even creditors that you forgot about).

Simply put, expect all of your creditors to file a claim. In a Chapter 13, they have nearly 120 days from filing. (They must file one 90 days from the first scheduled 341 meeting. The first scheduled 341 meeting is usually no less than 30 days from filing.) This is why most of them have enough time to not only file, but to sell a portfolio of "junk debt" to those companies I listed above. They are known, collectively, as junk debt buyers (JDBs). They pay about $0.10 or less on the dollar and hope to recover something in the Chapter 13. These JDBs are highly determined to file and they file 100% of the time.

A Chapter 13 is not a settlement. A Chapter 13 is a debtor reorganization and the debtor pays back either 100% or their disposable monthly income (DMI) multiplied by their applicable commitment period (3-5 years).

Now, did I have a couple that didn't file? Yes.

Does it matter? No, unless you're in a 100% plan.

[shipo]

In my case, I was not in a 100% plan, however, 100% of my creditors (or the companies which purchased the debt) filed a claim.

[Carmella]

I think even if we name them it wouldn't mean they won't make a claim in every case. I never figured it out since I was in a very bad emotional state and our credit cards all went to collections. I don't want to post who I think didn't claim incase I get it wrong. At one point I had figured a few out.

I have read several people didn't have 100% of the creditors place a claim so it's not uncommon, but don't count on all of them not placing a claim.

[HLS]

I am new to this. what does it mean the creditor files a claim? you mean they want part of the $$ you be paying every month? And if they don't file a claim it means they write off the debt?

[Carmella]

HLS
Basically, yes. The creditors will get paid if they file a claim. If they do not file a claim, they do not get paid/ you don't have to pay them now or ever. The creditors who filed a claim, filed for the amount we owed them. The BK document has a list of creditors and the amount that will be paid back. we supplied the attorney with all our creditors (many credit cards) and the amount we owed at that time.

However, the payment is set to pay all the creditors. If they do not all file a claim the payment isn't less, but you finish the plan in less time in a 100% pay back.

I don't know how it works when you are not paying back 100%

I am sure how I am writing this is over simplified, but it what we experienced in our BK 13.