What happens if no creditors respond to a Notice of Need to File Proof of Claim?

Asked about 2 years ago - Warrenton, VA

I am in the midst of a Chapter 7 bankruptcy. I filed the paperwork about 6 weeks ago and have had the 341 meeting. Recently I received a copy of the Notice of Need to File Proof of Claim that was sent out to my creditors. Since all of my creditors are either credit card companies or the collection agencies that took over after charge offs, what happens if no one files such a claim in the time specified?

Attorney answers (3)

  1. Dorothy G Bunce

    Pro

    Contributor Level 20

    4

    Lawyers agree

    Answered . In some instances, it may make sense for you or your attorney to file a proof of claim on behalf of a creditor that has not done so on their own. For example, claims that cannot be discharged can be paid from the proceeds, such as student loans, child support debt, priority tax debt.

    Hope this perspective helps!

  2. Michael L Detzky

    Pro

    Contributor Level 14

    3

    Lawyers agree

    Answered . The fact that the Trustee circulated a Notice to File Claims indicatesd to me that he regards this as an "Asset Case". If no creditors file Proofs of Claim, they willl not be paid.

  3. Manuel Alzamora Juarez

    Contributor Level 20

    3

    Lawyers agree

    Answered . I agree with Mr. Detsky, if a creditor does not file a proof of claim within the prescribed period, they will not be able to collect later. Good luck.

    This answer is provided by Manuel A. Juarez, Esq., 'El Abogado Hispano de California, and it is of a general... more

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