Notice of Allowance of Additional/Late Claim

[beachgirl]

We confirmed last month and thought everything was okay. Today we got a Notice of Allowance of Additional/late Claim. It says:
An additional claim has been filed in your case. If we decide to object to the claim, you will receive a copy of the objection. If no objection is filed by you or this office, the claim will be paid according to your proposed plan. If you wish to object, please contact your attorney.
Then it has the name of the creditor, the amount, a box titled 'forgive' with $100.00 as the amount.
Does anyone know what this means? Of course we can't reach our attorney until Monday and this had really got me concerned. HELP!?!?!?

[Minnymouth]

All it means is that the Court is notifying you that a creditor filed a claim past the 60 day period....... The Trustee will decide if he will pay the creditor or not and you also have the right to object if you wish too......

Personally I wouldn't over a $100.00...... the Trustee may not pay them anyways for filing late.....

Nothing to really be concerned about.......

[beachgirl]

But does that mean our payments will go up? Or are they just wanting their money first? And what's the $100 mean? I'm confused!!

[anonymuse]

How much do you owe to that creditor?

[beachgirl]

$2000

[lrprn]

$2000

What is likely to happen is that if this creditor is allowed to add themselves to your list, your payment remains the same - the pot just gets smaller for the other creditors since their numbers will be increased by one.

What excuse did this creditor give for missing the deadline? Is it a legitimate reason? You can fight them being added and the trustee is likely to side with you - trustees don't like exceptions, especially if the reason this creditor is using is a weak one.

[beachgirl]

I still don't really understand, and my attorney is out of town. Could someone explain this further. Today, I got 2 more notices. All of these creditors were already listed on our original plan. Are they wanting more money? Can our plan be changed because of this? We're already paying $1500 a month and that takes my entire check. I just don't understand why they are filing this and want this really means. I thought once we were confirmed, that was it?!?

[lrprn]

I still don't really understand, and my attorney is out of town. Could someone explain this further. Today, I got 2 more notices. All of these creditors were already listed on our original plan. Are they wanting more money? Can our plan be changed because of this? We're already paying $1500 a month and that takes my entire check. I just don't understand why they are filing this and want this really means. I thought once we were confirmed, that was it?!?

Just because the creditors were listed on your plan and received notices from your lawyer doesn't mean the creditors filed their claims in a timely manner. The creditor has to notify your trustee officially to be included on the pay list. Sounds like several of yours forgot to do that and are now wanting to add themselves in late.

Remember that even if the judge allows all three to be added late, this WILL NOT increase your payment. Adding three more creditors will just decrease the amount the trustee pays each creditor from your monthly $1500. Here's a made-up example - let's say you had 10 original creditors who receive payment from the trustee each month. Your $1500 pays the trustee and your lawyer first leaving $1000 for the 10 creditors - $100/each. The judge adds three more creditors. Now the $1000 is divided up between 13 creditors = $76.92/each instead. Does that make more sense?

Just curious - what reasons are the three creditors giving for requesting to be allowed to be added after they missed the 60-day window?

[aa06a47]

I still don't really understand, and my attorney is out of town. Could someone explain this further. Today, I got 2 more notices. All of these creditors were already listed on our original plan. Are they wanting more money? Can our plan be changed because of this? We're already paying $1500 a month and that takes my entire check. I just don't understand why they are filing this and want this really means. I thought once we were confirmed, that was it?!?

beachgirl, your plan will remain the same. Your payment will not increase because of creditors filing there claims late.

What happens to late claim filers, unless they can prove they didn't receive "timely" notice, is 1) the trustee decides if they will allow the late claim and 2) they go to the bottom of the list on priority for payment.

What I mean by this is once all the unsecured creditors who filed timely payments are paid off 100%, those that filed late will start getting paid.

Hope this explains it and eases your mind!