When you file for bankruptcy, you have to list out all the debts you have, and give all of your lenders notice that you have filed a case. Once your lenders are made aware of the filing, they are entitled to ask what you intend to do regarding their particular debt. If you have filed a Chapter 7 this might mean that you will be asked if you are going to reaffirm the debt, and in a Chapter 13 case your lenders will have the chance to review the plan of repayment your propose and either agree to the terms or object to what you are suggesting. Another part of a Chapter 13 case that involves your creditors is the filing of a proof of claim.
A proof of claim is a filing, made by the lender, setting forth the details of your account with that specific lender. Most claims include the following data:
• The nature of the loan, meaning identification of what property was purchased with the loan proceeds.
• The principal balance due, and at what interest rate that balance is being paid.
• The normal monthly payment for the loan.
• A separate proof of claim might be filed for any past due amounts, this is referred to as an arrearage claim.
You have the chance to object to the claims filed in your bankruptcy case, and challenge the balances being requested. It is not always a good idea to take the lender’s word for it, and if your records show a different figure it is in your best interest to object to the claim. The Trustee assigned to your Chapter 13 case will need to know how much is owed, and to whom, in order to properly administer your case. One of the most commonly objected to claims is a claim filed by a mortgage company. Most mortgage companies file claims that include extra fees and expenses, and it can be difficult to tell exactly what these amounts are for and whether they are actually due. When we handle your bankruptcy matter, we make sure the claims filed are in line with what you show as being due, and if there is an error, we take the necessary corrective steps.
If you are considering filing bankruptcy to help eliminate debt, contact us at www.DsouzaLegalGroup.com.