Creditors Filing Claims

[freshstart32]

I have not been on here for awhile and able to post but our case was discharged on Feb. 6th and woo hoo does it feel good. It finally feels like we will be able to actually start our fresh shart and move on.

I do have a question though. When we went to our 341 meeting he said that he thought there might be assests as far as our tax money was concerned and he wanted us to get our taxes done and then give him the checks and he would then decide what he was going to do with that tax money. He sent out letters to all of our creditors saying that he believed there to be assests and no one had filed a claim until they got that letter. Now we have 5 creditors so far who have filed a claim and all of our other creditors have until March 3rd I believe to file a claim.

What I want to know is since we have had 5 people file claims will that be more than likely where our tax refund will go to? I was hoping we would see at least some of it and I had no idea anyone had even filed claims until I went thru the Pacer site a little bit more and then found the spot where it shows the claims that are filed.

I was just curious! I know the whole getting some tax money back from the trustee is up in the air because I have read some other posts but I just didn't know if you knew for sure that creditors had filed a claim if most definatly your tax refund would be going to those that did.

[HHM]

One has nothing to do with the other.

[325Falcon]

How can a creditor file a claim after you are discharged?

[HHM]

If the case is an asset case, the case remains open to administer the assets and claims.

[PaKettle]

One has nothing to do with the other.

Can you elaborate, please, HHM?

And Freshstart32, when were the claims filed by the creditors? Before or after your 60 days were up? Did you use an attorney? What does your attorney say about these "claims"? Where do you see them at Pacer (under which category or heading)?

[HHM]

LOL, you people are all over-thinking this...

See this post about the difference between discharge vs closing. http://www.bkforum.com/showthread.php?t=10879

Apparently, freshstart32's case was designated an asset case based on anticipated tax refund. Thus, the trustee sends out letters to all scheduled creditors informing them of said designation and giving them a deadline to file claims. The claims are simply the "proof fo claims" filed by the creditors at the trustee's request.

What I mean by "one has nothing to do with the other", is that the designation of your case as an asset case has nothing to do with creditor claims.

[freshstart32]

HHM you are correct as in our case was discharged on Feb. 6th but our case still remains open. Our trustee said it would remain open until he received the tax refund checks back and then at that time decided what to do with them if anything. So since our case was turned into an asset case due to the tax refund we would be getting back he changed the chance to file a claim against that possible asset to March 3rd.

There were 3 claims filed on Dec. 4th and one on Dec. 17th and then one also on Feb. 15th.

This is why I asked this because I might be confused as to what it means also. I thought that typically as long as a creditor did not file a claim to try and get any money that might be due to them, then they wouldn't get any if there was any money. Am I wrong about that? That was what one attorney had told us. Not the attorney we currently have. I have emailed him to see what to do about the tax refund we are going to be receiving in the mail in the next week or so and also a couple of other questions so I will see what he has to say also.

If you go on Pacer and click on the Claims register when you are all signed in and on the Query page. That should give you a list of people who returned the form and filed a claim and for how much they say you owed at the time the bankruptcy was filed.

Not all of my creditors filed proof of claims as you want to call them so I was assuming they only filed after receiving word that we could have assets in our case.

Does this really only apply if you are in a Chapter 13 as to how many creditors step forward and file claims? I was just reading some other responses to claim filing in other threads and they are all in the Chapter 13 forum.

Am I wrong on all of this? I think I might be more confused than what I originally was

[HHM]

Correct, if a creditor DOES NOT file a claim, the trustee DOES NOT pay that creditor.

I guess I misunderstood your question

Thus, if you are asking...if the tax refund exceeds the dollar amount of all claims FILED, will you get back those excess funds? I believe the answer is yes, but it probably will not be timely (also, there is a trustee fee as well). Thus, unless your tax refund is huge, and the claims filed are incidental, you can probably kiss that tax refund good-bye.

And yes, as for PACER, the claims register will tell you every creditor that has actually filed a proof of claim with the court.

And yes, creditors (should) only file a proof of claim in a chapter 7 when instructed to do so by the trustee. If you actually look at your Notice of 341 Meeting, it instructs creditors to NOT file claims unless asked to do so by the trustee.

[freshstart32]

Ok.....that was what I was wondering.

Well sorry but that just sucks

The total on the claims filed is $21,797.49 and our tax refund between the federal and state was going to be around $4300.00

I guess what pisses me off the most....pardon my language is that I mean honestly with the claims filed and the total amount it is and then if anyone else does step forward and makes that amount that much more......how much are these creditors even really going to get out of $4300.00 after the trustees cut.....so what is the point. Just makes no sense to me!

[HHM]

Something is better than nothing, I suppose?

As for your discharge, etc...there is nothing to worry about. You are still discharged and all your unsecured debt is discharged, etc etc. For all intents-and-purposes, your BK is complete, you have your discharge. Unfortunately, your BK cost you $4,300 of your tax return, but that is an issue of your state's exemptions.

[PaKettle]

Sorry freshstart32, that does suck that they are going to all take a little spit from the bucket... It would have done you a lot of good, and them practically none... But that's life I guess. But at least your bankruptcy is done and you got rid of a lot of debt, I presume!
So, alls you can do is move on I reckon!
Good luck!

[bankruptcyme]

Need help to find out is there a limit on debts in chapter 7

[blockhead]

AFAIK, None at all

[frogger]

Something is better than nothing, I suppose?

That's the way you've just got to look at it.

[CCsAreEvil]

That's the way you've just got to look at it.

Exactly. I was bummed when I found out a huge chunk of my tax refund would not be mine.. but like others have said, in the grand scheme of things, the vast majority of us have discharged a bunch of debt.

So, would you rather lose that tax refund or revert back to your position before you filed?