challenging a claim by a creditor

[holding on]

does anyone know if there is a time limit for challenging a claim by a creditor when your plan has been confirmed? I just received a document in the mail from the creditor's attorneys (a year end summary) which lists amounts owed at the time of bk filing that are less than the claim filed. In the $5000 less range. This document totally contradicts what was told to me by the creditor when I first researched the validity of the claim.

I'm very interested in this as this is a secured claim due to a judgement.

[EricaCallaha]

What did they originally ask for when they filed their claim with the court? That would be the real question. I don't think they can charge you more than what THEY claimed you owed them in their petition to the court. Put it back on them to prove that you owe the $5K more. And ask your lawyer. Something stinks in Claimsville.

Good luck.

[BigJohn]

Do you have a lawyer?

[justbroke]

First, as BigJohn aptly put it... do you have a lawyer? If so, have them check this out.

Otherwise, is this a "new" claim or an amended claim. If it's an amended claim, then they'll pay the face value of the amended claim. If it's a new claim, then you can object to it being time barred, however, you indicated it's a secured claim.

I think you're saying they didn't file a new claim, but there's new "evidence" that the amount was wrong. Well, since you're confirmed, and you're probably past the claims bar date, it's probably res judicata. If you were concerned about teh amount before, you should have researched the claim, since it's a judgment, by getting a copy of the judgment and seeing what was actually awarded. What may have happened, and it does, is that some judgments don't award all fees.

If you have an attorney, you need to ask them what the process would be. I'm thinking that you may be hosed... but then again, there is no set time limit for objection to claims. However, one may claim res judicata since the plan was confirmed.

[holding on]

Yes I do have a lawyer, he says I should investigate the claim. I asked him if I can legally challenge a claim after confirmation. He said yes. but this is the same lawyer who tells me that after 36 months I will be able to buyout my plan even though I am not at 100% AND the buyout would just be for the payments left. (which almost all of you guys say can't be done). So I think you can see why I'm getting all the info I can.

to clarify and provide a clearer example:

1. I get a judgement against me by creditor for 20,000. Creditor and I (through creditor's lawyer) agree to pay 700 monthly until bill is payed up.

2. 9 months later I file Ch13.

3. Creditor files claim for 19,000. As I said before, I did research the validity of the claim (i.e. why after paying 6,300 are you saying I owe 19,000?). Was told by creditor's account dept that interest drove the original 20,000 up.

4. A year end account tally sent to me by creditor's attorney says after paying 6,300 the balance due in may is 13,700 - and then the account is noted as being in bankruptcy.

So now that I am not swamped with researching and organizing my bk like I was at the time the claim was made, I have time to properly research - even consult with an accountant to see what the numbers really should be. But...can I challenge a claim after plan is confirmed. I can understand if I'm legally hosed, but just wanted to be sure. That's the gist of my question.

[justbroke]

So now that I am not swamped with researching and organizing my bk like I was at the time the claim was made, I have time to properly research - even consult with an accountant to see what the numbers really should be. But...can I challenge a claim after plan is confirmed. I can understand if I'm legally hosed, but just wanted to be sure. That's the gist of my question.

There is nothing in the Bankruptcy Code to prevent you from filing an objection at anytime. However, the creditor, if smart, could claim, as an affirmative defense, that you should have made such an objection prior to confirmation, that the issue is res judicata, and that you are barred from bringing such an objection due to the claims bar date having passed as well as significant time since the claim was filed.

Having wrote that, I just want you to know that the above is what the creditor will use as a defense.

You can file the late objection, but you will need to show that you couldn't do it before confirmation, and that you did it in a reasonable time (although I don't know what reasonable is).

[holding on]

thanks! That's very helpful