If a creditor’s proof of claim is too large, you may need to object to it to avoid dismissal of your Chapter 13 case.
If a creditor’s proof of claim is a “priority” or secured debt is too high, object to it to avoid paying too much in your Chapter 13 case.
If you object to a creditor’s proof of claim in your Chapter 13 case, and prevail in that dispute, you pay nothing on that debt.
If a creditor doesn’t file a timely proof of claim on a debt in your Chapter 13 case, you pay nothing on that debt.
In some jurisdictions you can pay nothing to your “general unsecured” creditors, if all your money goes to paying higher priority ones.
Chapter 13 payment plans usually have you pay something to all of your creditors. But not necessarily. Certain creditors may get nothing.
The discharge of debts is just one of the tools of Chapter 13 for achieving your financial goals. It works differently than in Chapter 7.
The main goal of bankruptcy is often to write off–“discharge”–your debts. Here’s how it works in Chapter 7 “straight bankruptcy.”
Here are five ways that bankruptcy can involve assets you used to own, may own in the near future, or you own only a share of.
One special category of future assets in bankruptcy is property from a divorce–either from a property settlement agreement or court decree.
Beyond considering whether your assets have net value on the date of filing, do they generate rents, profits, or proceeds afterwards?
Which assets that you sell or give away before filing bankruptcy will be a problem, and which won’t?
Your assets can include property and possessions that you have sold or given away before filing bankruptcy.
Property and possessions that you have a shared interest in can be the kind you don’t think of as yours for bankruptcy purposes.
Inheritances and life insurance proceeds have a special rule when it comes to the timing of your bankruptcy filing.