Which is Worse:Having a claim filed or having a claim intentionally NOT filed?

[13for60]

OK - this is most likely me just being paranoid, but my internet reshearch doesn't show much info on this. Here is the QOD:

If a creditor chooses not to file a claim during one's BK proceedings (my case being a Chapter 13) does that creditor then have a different opportunity to destroyt one's credit report more than if they had filed a claim?

Some backstory: AmEx, who used to love me, now hates me. Letters to the attorney, the trustee, the judge, etc all with differing points and parts of law. Not quite objecting but just skirting the edge of being adversarial. Lots of questions (all brought up during the 341 interview and all answered to the satisfaction of the trustee) but mostly threats and nothing else.

So there is one week left to file a claim on my case. It's been 120 days (almost) and it's coming down to the wire. I have the distinct impression they will not file even with $20k hanging out there (but they did file on another account for $8k - go figure). I was wondering if by not filing they could add a special torch to my credit report or something like that. Or could it be that their attorney has dropped the ball (all beware Beckett and Lee from Boston, MA!) and totally spaced filing the other claim..?

Just wondering. And being paranoid. It's all a conspiricy.

--13for60

[frogger]

Some backstory: AmEx, who used to love me, now hates me.

Actually, they never loved you........

As long as they were listed, it is not your concern if they file a claim on your 13 or not. Once listed, if they do not file, it's over, provided you complete your plan.

Don't mean to be blunt here, but you're not special enough that they are going to pay you "special" attention. You're just another on a long list.

[df04527]

There's no "extra" damage they can do to your credit report to my knowledge. The damange is done. There is a faint chance (if they really want to be nasty with you) they can hurt your report more but I believe AE is smarter than that.

[kornellred]

In Chapter 13, creditors can file a claim even after the stated filing deadline date. It will be noted by the trustee, and the payment distribution via the trustee will change, resulting in the already filed creditors getting less of a share of the plan payments. Your plan payments will not change as a result of late creditor filings. There is no advantage gained by a creditor for either not filing or late filing.
Creditors are not looking to make things more difficult for the debtor. Bankruptcy is completely impersonal. All they want is their money, and they will either get it or not get it. In other words - bankruptcy is the creditor's problem, not yours.

[addisonsmom]

In Chapter 13, creditors can file a claim even after the stated filing deadline date.

How exactly does this work? I was under the impression that once that date is over, that they get nothing if they haven't filed a claim. I am only asking because I only had 1 creditor out of 10 that filed a claim before the due date. Thanks!

[despritfreya]

In Chapter 13, creditors can file a claim even after the stated filing deadline date. . .

With all due respect, this is not correct. A properly notified creditor has until a specific date to file a claim in a Chapter 13. If the creditor does not file a timely claim it will not be paid. Any late claim will be objected to by the Trustee under 11 USC 502(b)(9). A creditor who fails to file a timely claim has apparently chosen not to participate and its debt will be discharged (without any distribution under the Plan) upon completion of the Plan and entry of the discharge.

Des.

[catleg]

Well Des here's my story. A creditor (JDB) filed a late claim. I told my attorney to object to it. He made a motion to reclassify it as a late claim, which would only get paid after the "on time" creditors get 100%. I never understood this, but did not challenge him. The motion became an order and so now I have a single late claim in my claims list.

[despritfreya]

A creditor (JDB) filed a late claim. I told my attorney to object to it. He made a motion to reclassify it as a late claim, which would only get paid after the "on time" creditors get 100%. I never understood this, but did not challenge him. The motion became an order and so now I have a single late claim in my claims list.

So this begs the question. . .

Are you a 100% payback? If yes and the allowance of the claim (late) increases your required plan yield, then the claim should have been objected to and should have been disallowed in full as a late claim.

It should be the Trustee's job to object to a late claim as the trustee has a duty to maximize the payback to creditors who follow the rules. As to a debtor - sure, a debtor has standing to file an objection to a claim in a Chapter 13 but it is not cost effective unless the Plan is a 100% payback. If not objecting to the claim means the other creditors will get less but the Plan funding will not change it makes no sense for a debtor to run up additional legal fees. At least this is the way I approach it.

Des.

[catleg]

Good point. I guess I was too on top of things. Should have let it slide a bit and seen what happened.

P.S. No, not 100% payback.

P.P.S. Didn't cost me any legal fees.

[catleg]

To the OP, Amex is notorious for contesting dischargeability of business accounts.

No doubt they're still thinking about what to do with you down to the last day.

But whether they file or not won't change anything for you.

You'll still be blacklisted for life at Amex unless you pay them back their debt, whether discharged or not.