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Government Proof of Claim? Any advice is appreciated

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    Government Proof of Claim? Any advice is appreciated

    Seeking advice on Status of BK Chap 7

    Filed 4/27/10
    First Mtg 6/4/2010
    Obj for discharge due date 8/3/2010
    One creditor objected on 8/3/2010
    Government Proof of Claim set for 10/25/2010
    Non-asset case

    What does Government Proof of Claim mean? Almost five months into BK and no discharge.... We would really like to be done with this and be able to move on

    Also, received certified letter from lawyer representing mortgage company that "foreclosure sale of the above referenced property is scheduled for October 5, 2010" The Bk hasnt been discharged Any insight on this?

    #2
    The government has a longer period of time to file a proof of claim. Probably nothing to be concerned.

    Are you sure the Objection that was filed was not the Motion for relief from stay from the mortgage company to continue with foreclosure.

    Comment


      #3
      Thank you for your reply. In July, the mortgage company filed for and was granted Motion for relief from stay. They are proceeding with the foreclosure. We received a notice that the house will go up for sale on the auction block on 10.5. The objection was filed by one of our creditors. We owned a Franchise, market went bad, business went bad and we lost everything. We closed our doors and they sued us for remaining royalties under our Franchisee agreement, plus a 50% penalty, plus $7k in interest, plus $57 in legal fees. The Franchisor filed the objection on the last day possible for an objection

      Can you explain what "The government has a longer period of time to file a proof of claim" means

      I am so thankful for your response and help

      Comment


        #4
        What part of "government has a longer period of time to file a proof of claim" do you not understand? All that entry is showing you are the various statutory time lines for various events in your case. Normal creditors (i.e. credit cards, car loans, mortgages) must file a proof of claim within 90 days, government creditors (i.e. the IRS) has 180 days).

        As for the foreclosure, you have answered your own question, once the Motion for Relief from stay is granted, the creditor can proceed with foreclosure. The mortgage lender, once they get the relief from stay does not need to wait until discharge.
        Last edited by HHM; 09-15-2010, 08:17 AM.

        Comment


          #5
          Being new to this process, I didnt understand various statutory timelines for various events. Thank you for providing clarity on Normal creditors (i.e. credit cards, car loans, mortgages) must file a proof of claim within 90 days, government creditors (i.e. the IRS) has 180 days).

          Also, we didnt know that the lender didnt have to wait until the discharge

          Comment


            #6
            No problem...are you represented by an attorney...any half way decent attorney should be able to explain this too you.

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              #7
              We are represented by an attorney and his explanation has been "dont worry about it" However, it was when we logged onto PACER that we realized that the Franchisor had filed the objection on 8.3.10. There was no communication from our attorney on this until we brought it to his attention. He played it off, but it seemed to us -- that he missed the objection. He said he would file for a dismissal, that the objection had no merit and to stay tuned.

              Since the mortgage company is foreclosing on 10.5 -- will that have any further negative affect on our credit score -- beyond the BK. Thanks

              Comment


                #8
                Hi dfgorals, assuming your lawyer is 'halfway decent,' that fact that he is not concerned probably means it will be easy to handle. On the surface, it doesn't sound too tough, unless you deliberately defrauded the parent company it looks like debt to be discharged in a Ch 7. Not sure what they can object to....

                Since your house went through the BK, you should not have the foreclosure on your credit score (the BK is bad enough!). BUT...this doesn't mean the credit reporting agencies (CRA) will get it right. After your case closes, pull all three credit reports and make sure all accts in the BK have a zero balance and notated 'IIB' (included in BK) Watch out for negative notations like 'charged off' 'closed by issuer' that sort of thing. Write letters to get them to remove any negative notation besides the BK

                Good luck with all this,

                Tom in Colo
                Ch7 filed 5/12/2010.....341 meeting 6/30/2010....report of no distribution 8/15/2010.....discharged 10/01/2010.....closed 11/09/2010

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