Debtor objection to proof of claim

[Allmostdone]

Is there a deadline for a chapter 13 debtor to object to an unsecured creditor's claim? I filed an individual chapter 13 and Sherman Acquisition filed a claim. The account was in my wife's name only and it is 20 years old. I obviously did not list it. The trustee's report I've been receiving had a notation next to it indicating they were aware it was my wife's account yet they paid close to half of it several months ago. It has since been flagged as "Reserve." I told my attorney about this claim several years ago yet he did nothing...which leads me to one more question...I saw a Justice Department web page a while ago detailing an initiative within the trustees' offices that dealt with looking into false claims by creditors and investigating complaints about poor service from debtors attorney's....does anyone know anything about this program? It was called "The Bankruptcy Civil Enforcement Initiative."

Thanks in advance.

[lrprn]

Is there a deadline for a chapter 13 debtor to object to an unsecured creditor's claim? I filed an individual chapter 13 and Sherman Acquisition filed a claim. The account was in my wife's name only and it is 20 years old. I obviously did not list it. The trustee's report I've been receiving had a notation next to it indicating they were aware it was my wife's account yet they paid close to half of it several months ago. It has since been flagged as "Reserve." I told my attorney about this claim several years ago yet he did nothing...which leads me to one more question...I saw a Justice Department web page a while ago detailing an initiative within the trustees' offices that dealt with looking into false claims by creditors and investigating complaints about poor service from debtors attorney's....does anyone know anything about this program? It was called "The Bankruptcy Civil Enforcement Initiative."

Thanks in advance.

You are still in Chapter 13 now, right? Do you have a lawyer? What does he/she have to say about this?

What state was your wife's 20-year old debt made in? (Depending on the state, this debt could be outside the statute of limitations and not be a valid debt.)

[Allmostdone]

My chapter 13 should wind up this month. If the claim by Sherman is not allowed and the trustee can recover the $500 already paid to them then I've already paid enough to have trustee do the final report and receive my discharge...with the Sherman claim allowed I'll still be done in about 3 weeks...almost all my debt was secured and priority..very little unsecured...

I only discovered this site, the NDC and PACER after I received the last paper statement from the trustee's office that showed payment to Sherman. My bankruptcy was very simple, payroll deduction with less than 20 claims on the matrix. And the trustee's paper reports I received had the notation "wife's ?" typed next to it so I was surprised the claim was paid.

My experience with my attorney is very typical in that once all the standard papers were filed it took a personal visit to his office to get a response to a question. My attorney told me several times during the past few years they would take care of the Sherman claim... the claim is in Alabama. They debt mined the claim from a dpartment store and yes I'm sure it is well past the statute of limitations. The department store closed 20 years ago!

But it all goes back to my basic question....is there some time limit for either the trustee or the debtor to object or question a claim by a creditor?

Again, thanks.

[Jman30]

While I can't quote a specific law here, I cannot believe the court would pay a claim that is at least 20 years old!!!

How much was the claim for?? It must have been pretty big for them to come after your wife 20 years later...

Additionally, was your wife on the Chapter 13 as well?

[Allmostdone]

No, my wife was not on the bankruptcy....my name only.

The claim was for $1200.

The original debt was with a department store that closed 20 years ago. The
account was in my wife's name only.

Sherman Acquisition is a debt mining entity that buys for a pennys
old, very old debt and shakes the trees to see what falls out. My wife
has had the Sherman Acquisition pop up on her credit report several times
over the past few years. Each time she simply disputes it and the credit agencies remove it.

I'll call the trustee's office and see about getting a copy of the proof of claim form...

Any other advice would be appreciated.

[Jman30]

That is crazy. I know about Sherman Acquisition....I've dealt with them before in the past.

Others on this board are more savvy in this area than me.....but I don't know if they can come after you for your wifes debt.

You could get a creditor-happy judge who allows it though.

Question: Why didn't your lawyer dispute the claim when they first filed it???? The judge might say "too bad, you had your chance to dispute it" two years ago.

[Interlaw]

You are still in Chapter 13 now, right? Do you have a lawyer? What does he/she have to say about this?

What state was your wife's 20-year old debt made in? (Depending on the state, this debt could be outside the statute of limitations and not be a valid debt.)

You technically can object to a POC at any time before discharge. The earlier the better, of course, since it's easier to stop someone from receiving money than to get it back. Make sure the objection includes a request that the creditor repay any money already received under the Plan.

Brett Weiss
[email protected]

https://www.brettweiss.com/bankruptcy

************************************************** ***************
The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
************************************************** ***************

[Allmostdone]

a few more details

I finally saw the proof of claim filed by Sherman Acquisition.

The form lists my wife's name (who is not a party to the 13. My name only)
But the form lists my Social Security number.
The names and numbers are used throughout the form.
The debt was charged off in 1991

I've spoken with my attorney 2x in the past month-still no objection filed.
I only owe $380 more to pay off the bankruptcy and that would include
$1200+ paid to Sherman Acq.

Now, it's really not so much about the money leaving my pocket but more
about who is getting it. This firm has a terrible rep as a debt scavenger. They should not have received anything.

Filing an objection pro se would of course delay my discharge by a month or more and I am curious about filing an objection on my own when I've already been represented by councel.

Any thoughts?

Thanks.

[aa06a47]

Allmostdone, I would assume the claim by Sherman was made within the period allowed for claims when you case began. I know I received a list of my claims after the deadline for creditors to file claims. The instructions I received was to review the claims and notify the trustee if I disputed any of the claims. I would say you might be a little late in filing an objection.

Since your "allmostdone", I would really ask if it is worth your time? If you stand a chance of getting the money back, it might be worth it. If the money will just go from one unsecured to another, then I wouldn't waste my time on it? I wouldn't take the risk of delaying things a month (and you might find it is even longer than that if they want to fight about it).