Filling out a "proof of claim" for the first time, Question

[jgb]

I had flood damage to my home and gave a contractor $2000.00 deposit for repairs. I now have a "Proof of Claim" form to fill out as the contractor is under Chapter 7. Since this deposit was for work on the family home, I want to check the box in section 5 which makes this a "Claim Entitled to Priority". Any thoughts or advice is appreciated,JGB.

[frogger]

Sorry, but I do believe that you will find that you're not a priority as you are not a secured debt. How long between you paying him and his chapter 7 filing?

[justbroke]

You are not entitled to priority. Your debt is likely an unsecured debt as well. Priority is typically for most income taxes and other special category items. As frogger eludes, you only have so many days from when you were notified to file that form (Official Form B10). You must also attach evidence of the amount to it as well. If you do attach a contract and/or canceled check or bank (credit card) statement, make sure you REDACT any personal information since this will be public record. Personal information would include the actual account number on a check or the actual credit card number on a bill. Also any Date of Birth or social security numbers should be redacted.

What I suggest that you do is get a PACER account and check to see if this is an asset case. If this is not an asset case, then filing a claim is moot, although you could still file the claim. Most creditors check to make sure the case is actually an asset case before filing a claim as it would be a waste of time to file a claim otherwise.

[LadyInTheRed]

Actually, this could be a priority claim under 11 USC § 507 (a)(7)

Seventh, allowed unsecured claims of individuals, to the extent of $1,800 for each such individual, arising from the deposit, before the commencement of the case, of money in connection with the purchase, lease, or rental of property, or the purchase of services, for the personal, family, or household use of such individuals, that were not delivered or provided.

http://www.law.cornell.edu/uscode/text/11/507

[jgb]

This is the language used next to the box I want to check on the Proof of Claim form. I do not know about the "asset" case status. Should I get any redacted copies certified/notarized?

[justbroke]

So, it may be 7th in priority but I would check if it's an asset case. You can do this via PACER or you may be able to call the Clerk's office and ask. You do not need certified copies. You only need to do the redaction. The claims process is meant to be "easy" unless and until the debtor objects and then you would need to defend the documentation/claim.

(Good catch LITR... I never knew that was higher than taxes which are 8th.)

[jgb]

Thanks for the guidance. I will check the box for this priority. There is also a Meeting of Creditors on December 30th. Should I attend? Lastly, regarding the proof of claim and the redacted documents submittal to the Bankruptcy Clerk's Office. I was going to simply mail this to the Office ret. rcpt. requ.. Sound O. K.?,thanks, JGB.

[justbroke]

Just about everyone mails the claims (or does them online). I think creditors are allowed to get a "claim only" filing account on PACER... but don't worry about that at this point. Mail them to the Clerk of the Court. You may want to get a PACER account so you can make sure it was received. Again, you may want to call the Clerk of the Court's office and ask if it's actually an asset case, but it really doesn't matter if you've already prepared your claim. At least with PACER, you'll see if there is going to be a distribution, but you won't know that until the 341 Meeting.

As for attending the 341 Meeting, hardly any creditor ever attends. If you do attend, it's a chance to question the debtor under oath, but it's not a full "hearing" of sorts. It's only useful to ask a debtor where certain property is held or ask what their intentions are with certain property. It may be useless for you.

If you have spare time and want to attend the 341 Meeting just to hear what the debtor has to say to the Trustee, that's fine.

[jgb]

I certainly appreciate the assistance and will look into the asset status of this case. The info I received described this action as one originally filed under Chapter 11 on 08/13/14 and was converted to a case under Chapter 7 on 11/19/14. Thanks, JGB. I just checked PACER and this is an ASSET case.