How are the claims of unsecured creditors handled under chapter 13?
Unsecured creditors must file their claims with the bankruptcy court within 90 days after the first date set for the meeting of creditors in order for their claims to be allowed. Unsecured creditors who fail to file claims within that period are barred from doing so, and upon completion of the plan their claims will be discharged. The debtor may file a claim on behalf of a creditor, if desired. After the claims have been filed, the debtor may file objections to any claims that he or she disputes. When the claims have been approved by the court, the Chapter 13 Trustee begins paying unsecured creditors as provided for in the Chapter 13 plan. Payments to secured creditors, priority creditors and special classes of unsecured creditors may begin earlier, if desired.
Unsecured creditors must file their claims with the bankruptcy court within 90 days after the first date set for the meeting of creditors in order for their claims to be allowed. Unsecured creditors who fail to file claims within that period are barred from doing so, and upon completion of the plan their claims will be discharged. The debtor may file a claim on behalf of a creditor, if desired. After the claims have been filed, the debtor may file objections to any claims that he or she disputes. When the claims have been approved by the court, the chapter 13 trustee begins paying unsecured creditors as provided for in the chapter 13 plan. Payments to secured creditors, priority creditors, and special classes of unsecured creditors may begin earlier, if desired.
Unsecured creditors cannot receive any distributions from the Chapter 13 Trustee unless they file a document with the court known as a Proof of Claim. This document must be filed within 90 days after the first date set for the meeting of creditors. If it is not, the debtor may object to it, and have the court declare it disallowed (unapproved and therefore not eligible to receive payment) as late. Unsecured creditors who fail to file claims or whose claims are disallowed receive no distributions from the Chapter 13 Trustee, and upon completion of the plan their claims will be discharged. If necessary or desired, the debtor may file a claim on behalf of a creditor. If a claim filed by a creditor is incorrect as to amount or otherwise, the debtor may file an objection to it and request a hearing before the court. When the claims have been approved by the court, the Chapter 13 Trustee begins paying unsecured creditors as provided for in the Chapter 13 plan.
