Skip to main content

As a creditor what can I expect at a chapter 13 hearing. Thank you in advance

Deerfield, IL |

My wife and I rented a house to a single mother of two. After two years of excuses and promises we had to evict her. She was given a tiny payment plan (35.00) a month. She was given a judgement for 9500.00 dollars. It has been close to three years with very little payment she has filed chapter 13. What can we expect at the creditor meeting? Thank you again for any information

+ Read More

Attorney answers 5

Best Answer
Posted

The so-called "meeting of creditors" isn't really that anymore. Usually creditors don't appear at these meetings and your one question "do you intend to pay me" has the obvious answer of "NO!" If this tenant is still in the property, you need a lawyer to apply to lift the stay so you can evict her. If she is gone, count your blessings and file a claim. You can read the plan to see if you get paid, but as an unsecured creditor, you usually get nothing. Hope this perspective helps!

Posted

Not much.
All the work is done beforehand.
What you need to do is prepare and file a proof of claim with the bankruptcy court.
Only people who file claims in a timely manner get paid.
Look at the 341 Meeting notice to see the deadline to file.
Sadly, yours appears to be an unsecured claim. Those usually get paid pennies on the dollar. And, they only get paid after the secured debts. So, you might not see any money for years.

Posted

My best advice is to keep your expectations low. The 341 hearing are very brief generally and do not get into detail about individual debts unless they are significant or unusual. You will be permitted to ask questions of the debtors. Without the assistance of an attorney though you may find it intimidating to do so or that your questions are met with objections or challenges by the debtors counsel or the trustee. The pace will be quick and businesslike and very different from what you may be expecting of "court". There will be no judge or reporter, very little of the legal procedure people expect. Have your questions prepared ahead of time and day you go. You will feel pressured to move fast and be concise so make sure that you have a plan.

More important than the hearing though is the careful consideration of the debt owed you. Consultation with creditor attorneys may reveal that the debt owed you can be found nonchargeable. One example would be if part of the money was due to intentional acts of damage. This type of claim can be found to be nondischargeable in some cases. Similarly if it can be demonstrated that she defrauded you in some way. Again this will probably require counsel as the rules in bankruptcy cases a very particular.

Finally make sure you craft a carefully drafted and timely claim for your judgment to maximize the chances of recovery through the plan payment itself. Just don't hold your breath for this though as creditors lacking security for their debts generally do not fare well in the plan.

Posted

Your trustee will be Glenn Stearns. You will be asked to explain your income and expenses. You'll be asked to briefly go over your income tax returns. You'll be asked if your schedules are complete. The trustee will explain to you how much you'll have to pay each month and where along with all of the details of chapter 13 administration. You'll also be informed about the need for a financial management course. You'll be asked to provide your income tax returns to the trustee annually during the terms of the plan. The meeting might take 15-20 minutes. Trustee Stearns may delegate to another person on his staff for the meeting.

This response does not create an attorney client relationship and is provided as a matter of general information only.

Asker

Posted

Did. You read the question?

David Leibowitz

David Leibowitz

Posted

I thought I was responsive. You asked about your chapter 13 creditor meeting and what to expect. You live in Deerfield, so I assume you live in Lake County. But if you'd like me to explain anything further, you're free to give me a call at Lakelaw. Contact info is at lakelaw.com. Since you are in chapter 13, though, I must also assume that you already have an attorney who should explain everything to you as part of your engagement with him or her. I hope this helps.

Asker

Posted

It was not my creditor meeting. As the title stated, I am a creditor to someone else's chapter 13 meeting.

David Leibowitz

David Leibowitz

Posted

You can ask limited questions regarding the debtors assets. But if the plan meets code requirements there is not much you can do about it. Be sure to file your proof of claim.

Posted

Based on the fact pattern and reasonable assumptions, attendance at the chapter 13 bankruptcy meeting of creditors isn't merited; absent cause it's an unncessary imposition upon the bankruptcy debtor, the trustee and other attendees on a shared calendar. Generally the chapter 13 (and chapter 7) bankruptcy "meeting of creditors" is a meeting without creditors. Superfluous appearances might on occasion be made by both creditors and creditors' counsel.

This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn’t address all facts & implications of the question; it’s general info, not legal advice to be relied upon and exceptions may apply. It creates no attorney-client relationship; it may be pertinent only to CA and/or its Southern District Bankruptcy Court in San Diego. It’s independent of other answers. It may be time sensitive, as in past the “Use by” date: laws and case law change. Hire a bankruptcy lawyer before acting or refraining from bankruptcy or other legal action.

Asker

Posted

If I understand you correctly, I should not bother to attend this meeting because it would be an imposition to the lady who cheated me out of over nine thousand dollars.

Asaph O. Abrams

Asaph O. Abrams

Posted

It’s arguably an imposition upon the asker unless satisfaction of sitting and staring daggers at the single mother of two (when extended default was arguably enabled) merits appearance, even though it won’t yield (higher) payment. I strive to understand and relate to a person’s hurt; but I serve the public best by offering an objective perspective rather than suggest the pursuit of conflict for conflict’s sake. I don’t disrespect the public by telling someone what they want to hear if it contradicts productive action. This isn’t legal advice rendered to a client; it’s limited opinion designed to promote knowledge (and argument) among surfers of the World Wide Web who happen upon this legal forum.