Bk 13 creditors did not file

[Romeror2k]

I have a few creditors who
did not file claim, so they are not included in plan. Can I negotiate settlement with these creditors so I can clean up my credit report

[despritfreya]

Welcome to the Forum.

You did not state how far into your Chapter 13 you are. I will assume your Plan was recently Confirmed and you have at least close to 3 years to go, if not more.

Why would anyone try to pay a creditor who elected not to participate in a distribution under a Chapter 13? The debt will be discharged upon completion of the Plan.

1. Point of fact is that you should not have excess funds to "negotiate" because, if you do, you must be under reporting your income and/or over reporting your expenses to the bk court. You are on a budget.

2. Your credit report should not be of concern. The most important thing is completing the Plan, getting a discharge and then, moving on with your life.

Bottom line - IMO you should leave it alone.

Des.

[justbroke]

I have nothing to add to what Des wrote.

Welcome to BKForum!

[Carmella]

Correct me if I am wrong, but if they do not file a claim then that's that. They had the chance to get paid back, but turned it down.

I never heard/had the impression we are further penalized or that we owe them $$ once they turn down the claim.

I had creditors not file a claim and it just meant we ended Chapter 13 earlier than 5 yrs because the amount we had to pay ended up being more than the the claims that were filed.