Question for those in a 100% payback

[greenthinker]

For those of you paying back 100%, I'm curious about how many of your unsecured creditors filed claims. Do they typically all file claims, or are there usually some that do not?

I also read somewhere that if you are proposing a 100% payback, it increases the likelihood that your creditors WILL file claims. Is that true?

We have not filed yet, but based on our DMI there's no getting around having to pay 100%. And, that's not the end of the world, especially since we do owe the money. But, if any of our creditors do not file claims, it would be a welcome break!

[lrprn]

There's really no consistency around why unsecured creditors file or don't file claims. Impossible to predict. In our case, one cc we owed $12K on didn't file a claim, and one small oil cc we owed $150 to did. (Our payback is about 80%.) Secured creditors 99.99% file claims so they keep financial ownership of their asset.

The one nifty thing about being in a 100% plan is that 100% is calculated on every unsecured creditor filing a claim. If that doesn't happen, then it's possible to reach your plan end earlier than your plan states. The bk court can't keep you in a plan that's paid off all debts before 36 or 60 months (whatever is the length of your plan) arrives.

If you haven't had your free initial consultations with at least 3-4 experienced bk lawyers in your area, then it's time to set those up. Self-calculated DMI is often way off. Don't make assumptions without sound legal advice ahead of time. Good luck - hope your filing goes smoothly.

[papie]

It solely depends on the creditors and their practices. There are some companies that just do not file claims, period. I know a few healthcare companies I did collections for automatically wrote off all accounts for those who filed bankruptcy. They didn't even care about the details, if the guarantor (the owner of the account) filed bankruptcy, they automatically wrote off the debt. On the other hand, some companies are all over that and want to be first in line. Some companies only submit a claim if it's over X amount of dollars. I've never done bank collections, so I have no idea about credit card debt. I know some banks are fierce about getting their money and others seem not to care. Higher dollar accounts tend to be grouped a little different than someone who owes a smaller amount.

It really depends on the creditor and their normal practices. I certainly don't think there's any across the board answer.

I'm in a 100% payback and I had some creditors not file a claim for amounts that I surely thought they would.

[greenthinker]

Thank you lrprn and papie for your replies. I have been doing some more reading up on this subject, so let me see if I'm understanding correctly. Assuming that I will have to pay 100%, the initial plan would be to pay each unsecured creditor 100% of the amount owed. If some of my unsecured creditors fail to file claims within 90 days of the scheduled meeting of the creditors, then I can amend my plan to remove payments to those creditors, thereby reducing the amount of my plan payment?

[jl37]

Hi there. In my case about 90% of creditors filed. I had the unpleasant experience as well of 2 creditors which I supposedly settled with claiming for the leftover amount of the balance. All in all I believe it all equaled out in end.

[jetsfan2010]

I am in a 100 percent plan, and so far when I look on 13data center most of my unsecureds have filed. I expected as much

[jcj112562]

If you are in 100% plan, and some creditors do not file claims within the appropriate time frame, then your plan will just not last as many months. After all, if you can afford to pay the plan payment at 100%, I would think most trustees will have you pay that amount, no matter how many creditors do, or do not, file a claim. I did my 13 pro se and finished off a (nominal) 5 year plan in 25 months. YMMV, consult your attorney to see how trustees in your district handle such things.

John