What is a split claim and can I object?

[lbrown]

Thanks in advance for any help, I filed pro se and next step is confirmation hearing Aug 2010, I received a letter from the Trustee that he was objecting a creditor claim because they listed the debt, around 4300.00 and also a split claim for 2600.00 but did not do the math correct on the proof of claim that they submitted, I have searched and searched to understand what this split claim could mean and why they are allowed to file it because i only owe them the 4300.00. Can i object just because i do not agree with the amount or is there something that gives them the right to ask for this split claim?

[justbroke]

It's really called a bifurcated claim. Bifurcation is when you take a secured claim and split it into a secured component and an unsecured component. The secured component must be dealt with inside the plan, and the unsecured component is subject to discharge.

Who is the creditor? The IRS?

[lbrown]

Yes, the IRS and there is a law firm that is representing a civil judgement against me. By them doing this split claim it is more than the judgement for what i actually owe them, is that legal?

[justbroke]

Yes, the IRS and there is a law firm that is representing a civil judgement against me. By them doing this split claim it is more than the judgement for what i actually owe them, is that legal?

I can't tell you. The IRS claim may include tax liability from other tax years, not included in any civil judgment. You can object and then the U.S. Attorney will defend the IRS in the case.

Since your Trustee is objecting, you may not need to do anything. You may though want to file your own objection. Be aware, that you'll have to defend it at the evidentiary hearing. You'll need to show why the amount is wrong.

[lbrown]

Thank you for the information, I need to clarify that it is 2 split claims, one with the IRS and I have no problem with that one, the other one is a judgement(civil) and the atty filed a split claim and the total when adding the split claim is more than what my judgement to them is, can they do that or are they counting on me to not object and get more money?

[justbroke]

Thank you for the information, I need to clarify that it is 2 split claims, one with the IRS and I have no problem with that one, the other one is a judgement(civil) and the atty filed a split claim and the total when adding the split claim is more than what my judgement to them is, can they do that or are they counting on me to not object and get more money?

If a claim is incorrect, you just object to it. There is no need to attempt to figure out why they filed that particular claim in that manner. They may have added attorney fees, interest and other items, causing the "claim" to be more than the judgment.

Again, if any claim is incorrect, file an objection stating the reasons why the amount is wrong, or why the creditor is not entitled to file a claim.