When you file bankruptcy, your creditors must file a proof of claim with the court if they want to receive payments from your bankruptcy estate. The proof of claim forms must be submitted within 90 days after the 341 meeting (meeting of the creditors). All unsecured creditors must file a proof of claim listing the amount owed at the date of filing and if they are claiming priority status and why.
In 20 to 45 days after the 341 meeting, a confirmation hearing will be held for the judge to either confirm or reject your payment plan in a Chapter 13 bankruptcy. If you or your trustee object to some of the debt listed on the proof of claims, you should include that in your plan clearly explaining why you dispute the debt. The bankruptcy court may conduct a trial to resolve the dispute. Your creditors can still file a claim after your plan is confirmed. Including all of your creditors in your plan and your repayment plan assuming they will submit proof of claims. If your creditors do not file on time, you can amend your plan and remove those creditors.
Who Gets Paid
When the trustee is determining where the money from your bankruptcy estate will be distributed to, claims for administrative fees will be paid first, then priority unsecured creditors than to nonpriority unsecured creditors.
If you are overwhelmed in debt and would like more information about bankruptcy and how you can get financial relief, contact a Plano bankruptcy attorney today.