Secured debt question...

[NowImDownInIt]

So I have a car loan that I am paying through the plan as I was behind in payments when I started and my car was repossessed, one of the major reasons for me filing in the first place. The finance company still hasn't filed their claim and my bar date is November 20th............ I just got a letter in the mail that is a cc from my trustee of a letter that he sent to my finance company telling them that I am confirmed, however, they will receive no disbursement until a proof of claim is filed. I'm just curious what happens if they don't file their claim... I was really expecting it to be filed by now. In the long shot that they don't file their claim before the 20th am I off the hook for that debt even though I still have the car?

NIDII

[mickeysfriend]

out of curiosity.....your car was repossessed and now you have it back. did you have to pay anything to get it back?

[NowImDownInIt]

No... and neither should you. Your credit union is in DIRECT opposition of the automatic stay and are not acting as they should, they can and SHOULD get in a lot of trouble for what they are doing.

[justbroke]

I was really expecting it to be filed by now. In the long shot that they don't file their claim before the 20th am I off the hook for that debt even though I still have the car?

You or the Trustee can file a Proof of Claim for any secured creditor. Secured Creditors are NOT required to file a proof of claim, as their liens survive Bankruptcy!!!

Even better, the Code allows a secured creditor to file a Proof of Claim (and receive disbursements) up to Discharge!

[NowImDownInIt]

That's about what I figured, I was just confused as to why I got the notice in the mail... I have about 6 creditors (unsecured) that have also not filed claims.... hmmmmm

[Carter]

What does it mean if an unsecured creditor fails to file a claim? Are you off the hook?

[justbroke]

That's about what I figured, I was just confused as to why I got the notice in the mail... I have about 6 creditors (unsecured) that have also not filed claims.... hmmmmm

If unsecureds don't file... that's the best. They will be discharged without distribution! Once the Claims Bar Date passes (60 days after the 341 meeting), then they can't file a thing and will get nothing!

[justbroke]

What does it mean if an unsecured creditor fails to file a claim? Are you off the hook?

Absolutely! See my post just before this one.

THis is the absolute best of all worlds! Some creditors just don't think it's worth their time to file. Mostly because you may only be paying 10% to unsecureds, and it could cost them several hundred dollars to prepare a Claim.

That's why many claims are sold to companies who are basically "mills" for claims. The Court has consistently called this practice "claims trafficking".