What do I do when a creditor files a claim?

[LCozy]

Am I supposed to file anything or do anything when an unsecured creditor files a claim? I just looked at my Pacer report and it shows that a person that filed a lawsuit against my business (which was out of business when they filed the lawsuit, but I put in in my BK anyways just to be sure that my personal liability was wiped out.) They are claiming $500,000. Of course, I think my case is a no asset case, but the trustee was/is looking into whether my property has more value than the allowed exemption (he's going to be hard pressed to get more than the allowed exemption though--and I am not surrendering it either).

Do I just sit tight and wait?

[justbroke]

You don't do anything with claims unless they are invalid and you want to fight the value. If you are a no-asset case, it really doesn't matter since they'd be paid nothing on discharge in a Chapter 7. As for whether you should police claims in an asset case, I really don't think it's necessary unless there is a chance that there could be a surplus of money from your liquidated estate and the claims are incorrect.

Just curious... is $500,000 the amount which was claimed in the non-bankruptcy lawsuit?

[LCozy]

Yes, it was a potential e-coli case (I am a small Raw milk dairy producer) and I had an very aggressive foody Seattle attorney after my old company...no e-coli was found in any of my milk...but the state swabbed my floor and found it there. Therefore, diggers will dig. They sent me a settlement letter for $500,000, so thats the figure I used in my ch 7 bk.

[LCozy]

Also, Justbroke, do you know what debted and meansno means on my case summary Flags?

[justbroke]

MEANSNO: Does not have the means to payback creditors (Translation: eligible for Chapter 7 discharge)

DEBTED: Has not completed the Debtor Education course (Translation: the second class, Financial Management, has not been completed... do not discharge)