Need understanding about Claims filed

[bkrelief22]

Hi everyone...when I checked pacer a bunch of our cc's have filed a claim. We are paying back very little to unsecured. What does their filing a cliam do? Is it like they were contesting the bk and wanting their money??
Does it have any effect on our ch plan and payment?? Our 341 is in December so I want to understand this all beforehand.

Thanks for the help
bk22

[Nicollette]

Hi everyone...when I checked pacer a bunch of our cc's have filed a claim. We are paying back very little to unsecured. What does their filing a cliam do? Is it like they were contesting the bk and wanting their money??

If it showed that your creditors have filed claims, then that simply means that filed their claims wanting to be paid. Creditors that do not file claims before the "bar date" will not be paid.

[AtWitsEnd]

Even though you are "paying very little" to the creditors, that "very little" will be divided between the creditors who did file a claim. If no claim was filed, they get nothing at all. However many creditors file or do not file has no effect on your payment. They are simply filing to be paid within the plan. Best wishes!

[justbroke]

Another reason unsecured creditors file in even a 10% or less Plan, is that your situation may change a year or two or three into your Plan.

Say, for example, you decide to let the house go. Now there's a lot more money available to unsecured creditors. Only the ones which filed before the claims bar date will get any distribution. (The claims bar date is the last date which unsecured creditors can file a claim. This date is set by law and is 60 days from the scheduling of your initial 341 meeting.)

[bkrelief22]

Thanks everyone...now I can relax a bit. This may be a silly question but do most cc's file claims? I would think it'd be nuts not to...I guess even getting a little $ is better than nothing.

bk22

[AtWitsEnd]

I think all 17 of ours filed. Alot of people have said only a few of their creditors filed claims. Its kind of a crap shoot I guess, you never know who will or who will not file. I was disappointed when I saw all the claims rolling in, until I realized the more that filed-the less they will get! That made me feel alot better

Now on the other side of the coin, had only 2 creditor filed claims and they would have been paid 100% in the plan, the plan would have been shortened. But I knew the chances of that were pretty slim.

This is only a guess, but with the current economic conditions of the big banks, I would think most would file claims now as they are really hurting in their own accounting departments.