Proof of claim with a 100% pay plan

[daisey]

We have had only one proof of claim filed. We have our 341 on Tuesday of this week. I am surprised that more have not filed I know they have more time, but still. I am curious.......if none of them file a proof of claim do they still get paid since we are offering 100 payback? I don't understand why with that kinda payback they have not acted to file a claim. I guess they still have plenty of time to file though.

[quietsound]

they have like 90 days to file claims. you could go weeks without a claim being filed and then they come in. I mean some of my higher claims have not come in and i'm doing 100% pay back....this is a long process, that i can tell you.

[aa06a47]

Many of the creditors will wait as long as possible to see what the payback is. If it is small, they will simply sell the debt to someone else and get as much money as they can up front without having to wait 3-5 years.

Alot of my creditors filed claims the last week. One of the big ones failed to file a claim at all.

[quietsound]

yes see with us....we only pay the joint unsecured debt back at 100% and the individual unsecured debt gets paid back at 1% ...I'm very surprised that any of the individual unsecured creditors have filed claims and they have filed claims. The return they are going to get is like nothing. I mean one creditor turned in a claim for $400 and as it stands according to the plan they get a whopping $4 ....what really is the purpose for them to file....unless they are required to file in order to turn it into their insurance or report to the irs as a loss...what would be the reason they would file it for 1 whole percent.

[CATCHMEIFYOUCAN]

How can Bankrupty be what it is if one is paying back 100% ! ? ? ? I guess the only benefit is you are protected from losing some things (like your house/car). AND you no longer pay they high interest rates, extra fees etc? AND you are safe from garnishment/liens?/judgements ? But still 100% ! ! !

Just my thoughts, Catchmeifyoucan

[lrprn]

How can Bankrupty be what it is if one is paying back 100% ! ? ? ? I guess the only benefit is you are protected from losing some things (like your house/car). AND you no longer pay they high interest rates, extra fees etc? AND you are safe from garnishment/liens?/judgements ? But still 100% ! ! !

Just my thoughts, Catchmeifyoucan

CMIYC, remember Ch 13 is designed to protect secured assets. You get to stretch out your car payments to five years, and if you are in arrears on mortgage or car payments, they are rolled into the plan. Your lawyer fees are mostly paid through the plan as well. It's a darned good deal if you have regular employment and want to keep a house and cars, even if as a part of the deal you end up paying 100%....but keep in mind that you pay back only the creditors that actually file claims, and no more interest or late fees can be charged after you file. (One exception - student loans....they are the "little debt that could" since they are non-secured but not only survive bankruptcy but can continue to charge interest throughout Ch 13...sigh...)

In our case only about a third of our non-secured creditors filed claims, so each of those will end up getting 100% of their money back. The two-thirds that didn't file a claim will get nothing and at the end of five years we will owe them nothing. In our case, that wiped out about $50,000, and we still have our house and cars. We have no regrets about filing Ch 13, not a one.

[CindyLou]

My brother is filing 13 with 100% payback with few assetts, but his income is too high for 7. He was on the brink of a few judgements and garnishments and wanted to reorganize his debts and decrease interest rates. He's now set at 7% for debts he was previously at 29%. Not a bad deal!!

OH, and a reason a creditor might file a claim even if they only stand to get 1% is because if the case is dismissed or if the income increases they still have their rights to the debt.

[quietsound]

One would think if it dismisses or if the petition/plan is dropped they would still have rights to the debt....they only get 1% of their balances due in the actual plan...an increase in income wouldn't change that...........many people on here never heard of a plan like mine where only secured and JOINT unsecured debt gets paid back at 100% while only the separate individual unsecured accounts are getting 1%.............There are a few states besides mine, and i think it's only PA that if a married couple files bankruptcy jointly and if they own a house and if that house is deeded...."tenants in its entirety" on the deed (which ours does)...the ONLY debt that even gets paid back are the secured debt of course but the JOINT unsecured creditors as well and IF you pay the joint unsecured at 100% then the individual unsecured accounts can be paid back but at a much less percentage rate.

If a person doesn't have enough disposable income to pay back the joint debt at 100% then the unsecured individual creditors won't get ZIP.

In our case, we can pay back 100% unsecured JOINT debt and the individual according to our plan is being paid back at 1%.

tenants in its entirety means JOINT bankruptcy 13 JOINT debt whether it be unsecured or secured would be paid back while unsecured individual debts would not have to be paid back at all unless 100% was paid for those joint debt.

not all states honor the "tenants in its entirety" laws...and i think it's just our state and PA that does....

This means if you live in the states that honor that law..........it's best if you and your spouse have individual accounts and not joint unsecured accounts because as it stands now, the bulk and I do mean the bulk of our debt IS in fact individual accounts and not joint.

[CindyLou]

What I was trying to say is that if a debtor does NOT file proof of claim, they give up their rights completely. So, they should file even if in the current circumstances they stand to get very little, things could change and they could have a bigger right to that debt.

[CATCHMEIFYOUCAN]

Car Payment

IRPN partly quoted:

"CMIYC, remember Ch 13 is designed to protect secured assets. You get to stretch out your car payments to five years, and if you are in arrears on mortgage or car payments, they are rolled into the plan."

Just wondering I kept my car payment "outside," the plan am I still not being charged interest? Now that I'm discharged, they are sending me statements again, which is fine. Cuz before when I filed they had written me a letter because I was in BK they could no longer send me statements and that I would have to remember on my own to make sure payments are in ON TIME by the 14th of every month.

Thanks, CMIYC

[petrified]

Tenants by Entirety

>>not all states honor the "tenants in its entirety" laws...and i think it's just our state and PA that does....<<

Virginia strongly recognizes Tenants by the Entirety. (not sure what state that you are in..).

P

[quietsound]

Virginia