Do unsecured creditors usually file proof of claim form?

[clo]

Here are the facts.

1. Filed Ch 7 only secured debt was mortgage loan the rest was unsecured credit cards and SBA unsecured disaster loan.

2. Notice was sent to creditors advising them that it was no need to file proof of claim as there did not appear to be any assetts in the case.

3. Trustee released claim to the property so bank could foreclose.

4. Found a buyer for the property before the foreclosure auction that paid the bank 100% what was owed.

5. Receive notice of discharge saying entitled to discharge.

6. Receive letter that was sent to creditors notifying them that they do in fact need to file proof of claim form if they want to be paid because the trustee seized a few hundred dollars in tax return funds therefore making it an assett case.

The only secured creditor was the mortgage loan who no longer has a claim because they have been paid off including all fees and costs when the property went to act of sale. There are a few law suits out there where their may be funds to distribute in addition to the tax returns if the cases go well. The trustee has not released claim to the law suits yet.

What it boils down to is this. The only debt that exists now is unsecured creditors. The unsecured creditors are chase, discover, and a couple other major banks along with an unsecured personal property disaster loan with the SBA.

How likely is it the credit card companies or the SBA will file a proof of claim form? None of them appeared at the meeting of creditors.

[clo]

Also if none of the existing creditors file a claim can the trustee hang on to the lawsuits just to get their percentage for distributing the assetts?

[frogger]

None had filed a claim to this point because most likely they were notified upon your filing not to file claims. Now that you're an asset case, they have now received notification and deadlines to file claims.

Yes. They will file claims, and the assets will be distributed.

[AngelinaCat]

Your discharge date may also be pushed back another 30-60 days now that you have been declared an Asset Case. That give your creditors--now that they have been notified that there are assets--more time to file claims if they want to. That doesn't mean they will.

[kawh]

Wait a sec, if the discharge notice was already sent, can it be revoked just because assets appeared? I am assuming the notice OP received was the actual discharge.

[tobee43]

Wait a sec, if the discharge notice was already sent, can it be revoked just because assets appeared? I am assuming the notice OP received was the actual discharge.

the case can be discharged but not closed. the order of close is what is key here, until one rec's that signed order the case is still opened.

[frogger]

Discharged and closed are two separate things. You are discharged (good!), but now is the time to administer the bk estate. You could be looking at 6 months to a year before closing. The case will not close until claims are paid, the estate administered, and the final reports being done. Patience grasshopper......

[clo]

LOL Patience is virtue sensai LOL Its actually the details of someone close to me but had I said its for a "friend" everyone would have said yeah right LOL. Yes the discharge notice was sent. With act of sale on the house it not only knocked off the secure credit but cleared about 300,000 in debt. The debt now is about 80,000 give or take unsecured with about 50,000 of it to the SBA disaster personal unsecured loan. The hope is that most if not all of the unsecured creditors dont file the proof of claim as it chips away at who will be in line for fund distribution. The notice sent gave the creditors until late October to respond which would be about 6 months from the time of filing for those keeping track of times. If they dont file by the October deadline they are SOL as far as I know. We will see what they do.

The confusing thing it lets say for conversation sake the lawsuits she has are settled and judgment is awarded in the amount of 200,000. Lets say proof of claims are filed in every case so she has 80,000 in unsecured debt that will be paid from the 200,000. That leaves 120,000 after all debts are paid. Isnt it true that the trustee gets a portion of the funds distributed in an assett case? If so does she get a percentage of the 80,000 recovered for creditors or does she also get a percentage of the reamaining 120,000 that would be left to the person filing bk?