Disputed claim question

[otguy2003]

We filed and were confirmed in our 13 case. After confirmation 2 of our creditors filed disputes claiming they are secured as opposed to unsecured. It has been over a year and it still shows disputed. Does anyone know how this process works or how long it takes?

The claims are for atv's that were sold well before the case was filed.

[michele71]

intersting. My opinion would be that because you still owe money on the atv's that you are still responsible for those payments. If you sold them and still owed money the credit company still has a credit/secured interest in them because the loan was secured by the atv's. Default = repo. They will probably get paid thru your 13. If you are confirmed I wouldnt worry about it make your payments and let the trustee divy out the money. I dont think there is any reason for concern.

[lrprn]

The claims are for atv's that were sold well before the case was filed.

If the assets were sold before you filed, I'm assuming that you decided not to pay off the loans with that money. That's too bad because without the ATVs to surrender to the lender, you do owe whatever is left on the loans.

Did you list the ATV loans as unsecured when you filed? Did the lender file their claim to be paid in your plan within the allowed time limit?

As far as how long this could take to resolve, the bankruptcy court moves at its own glacial pace. However, 15 months is a long time to go without hearing anything at all from the lender, your laywer, your trustee, or the court.

What does your lawyer say about this situation? Sounds like it's time to ask him/her what's causing the hold up.

[SMinGA]

It may depend on the credit account/agreement used to purchase the ATVs. If it was a store account, you may not have realized they claimed a security interest - and there probably isn't a title w/ a lien.

We have a freezer bought on a Best Buy store card. Didn't realize they would consider it secured. At our 341 hearing there was someone there representing BB, and asked us about the freezer. We still have it - and advised our atty we were NOT willing to pay what BB wanted in order for us to keep it. (Was close to the new purchase price, and I had paid on that account but then the balance went back up with fees & such.) So we amended statement of intentions to surrender, have not heard anything since.

Anyhow - my atty said if we had said we no longer have it, it would not have been an issue and the secured claim would have been denied. Keeping the debt unsecured. Our atty said it would not have been an issue, as it would not be unreasonable to no longer have an appliance after a few years. NOt sure if an ATV would be looked at the same way...