In a chapter 13 bankruptcy, creditors have an opportunity to file proof of claims in your case to let the trustee know what they are entitled to. When the case makes it way to TRCC, trustee’s recommendation concerning claims, this is where we can review the claims that were filed and make sure that they are legitimate claims. If the claim was filed and the debtor does not agree, then we can file an objection to the claim to have the claim disallowed. If they fail to respond to the objection, then the claim will be disallowed. There is really not any reason to object to a claim if you are paying zero percent to the unsecured creditors.
A reason why you would object to a claim is because the creditor filed a secured claim on household goods that could be voided by 522(f). We would file a motion to avoid the lien so the creditor will not receive any funds, because they can’t hold a secured claim if it is voided.
If you have any questions about the objection to claims process, contact your attorney’s office right away.
Latest posts by admin (see all)
- Money Management Skills Helps Prevent Bankruptcy - August 20, 2013
- When Laws Clash During Bankruptcy Cases - August 19, 2013
- Understanding Modern Technology and the Bankruptcy Process - August 16, 2013