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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15640
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I recently was discharged from a chapter 13 bankruptcy. My

Resolved Question:

I recently was discharged from a chapter 13 bankruptcy. My repayment plan was confirmed/paid at 100% . One of the unsecured creditors was an unsecured debt that I became fully responsible for as a result of a divorce (it's in the divorce decree). The creditor never filed a claim and so they didn't get paid. Now a third party credit collector is harrassing my ex-husband about the debt. Is he liable even when this debt was included in the plan and payable at 100%?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 1 year ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

In Chapter 13 and 7 bankruptcy cases, the creditor will not share in any distribution of funds from the bankruptcy estate unless it has filed a timely Proof of Claim.

WALLSTREETESQ :

If the chapter 13 petition listed the debt, he would not be liable, and he can notify the collection agency that the petition listed the debt, and since they did not file a proof of claim they lost their chance to collect.

Customer:

He has already done that but he was sent a letter two weeks ago, stating he was still liable.


 

WALLSTREETESQ :

Under the bankruptcy law, an unsecured creditor that neglects to file its proof of claim not only will not participate in the Chapter 13 payment process but, if the debtor completes the plan and receives a discharge, the unsecured creditor will have received nothing even though the plan might have provided to pay all or part of unsecured claims.

WALLSTREETESQ :

Then he can sue the collection agency for violating the Fair collection Act, and he should contact his attorney about a possible lawsuit against them.

Customer:

Does this still hold true since I was the only one the filed chapter 13?


 

WALLSTREETESQ :

If he did not file, but is liable to the debt due to being a co signor then they can go after him,

Customer:

even when the plan was confirmed at 100%?

Customer:

and in my divorce decree it states that I am fully liable for the unsecured debt?

WALLSTREETESQ :

The divorce decree does not bind the creditor,

WALLSTREETESQ :

if the divorce decree states you have to pay them, you would be liable under the Family Court, and your husband could enforce the divorce decree by taking you to Family court,

WALLSTREETESQ :

If he was a co signor he would be liable, the divorce decree puts the liability on you to pay by the Family Court, but it does not force the creditor to accept it.

Customer:

Ok. well I was misinformed because my attorney told me that if my plan confirmed at 100% then he wouldn't be liable. That was the only reason why I agreed to a 100% payment plan


 

WALLSTREETESQ :

Your attorney was correct if they had filed a proof of claim and were paid, since they did not, they were never paid.

Customer:

Ok. since they never filed a proof of claim did that give them the right to still collect?

WALLSTREETESQ :

that gave them the right to collect only on your spouse if he was a co signor not you.

WALLSTREETESQ :

Your ex husband would have to go to the Family Court to force you to pay it, or they will go after him and his credit.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.


If satisfied please provide us with positive feedback so we can receive credit.

WALLSTREETESQ :

What you may have to do at this point is contact the creditor and try to work out a settlement of 20-30% of the debt.

Customer:

ok thanks

WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15640
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and 3 other Bankruptcy Law Specialists are ready to help you
Expert:  WALLSTREETESQ replied 1 year ago.
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Expert:  WALLSTREETESQ replied 1 year ago.
good luck

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