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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Is a secured creditor in a Chapter 13 Bankruptcy required to

Resolved Question:

Is a secured creditor in a Chapter 13 Bankruptcy required to file a proof of claim before they can file a motion for relief? If not, what is the benefit to the creditor? The BK has been continually active for 17 months. Thanks in advance.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

When you asked about the benefit to the creditor, were you asking about the benefit from filing a Motion for Relief?

Customer: replied 5 years ago.
No. Sorry for the confusion. If a creditor is not required to file a proof of claim and chooses not do so, is there a benefit for the creditor? Side note... The loan is currently being litigated in the the federal court which was disclosed in the original BK filing. The debtor is a plaintiff in the lawsuit.
Expert:  cfortunato replied 5 years ago.

There is no requirement for a creditor to file a Proof of Claim before filing a Motion for Relief.

If a creditor is not required to file a Proof of Claim, that means the creditor was told to not file one. (In general, only unsecured creditors are ever told to file Proofs of Claim.)

So, the reason for not filing one is not that there is a benefit to not filing one, the reason is they were told not to.

 

I think this is what you wanted to know. If not, please let me know.

Thank you.

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