Make sure to list all of your debts secured and unsecured in your bankruptcy petition. The statute of limitations in CA is four years for written contratct and 2 years for oral. However, any payment that is made on that debt re-starts the statute. Even though the creditors cannot sue you, they still can attempt to collect that debt. Depending on the type of account and the last payment made will determine if the debt is outside the statute of limitations.
Therefore, a CH 7 would discharge the unsecured debt.
I hope this helps.
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The issue is, these debts were unpaid plan payments from a previous Chapter 11. If we file a subsequent Chapter 11, are these upaid plan payments treated like unsecured debt or do they have special status since they were prior Chapter 11 plan payments?
If our old 11 plan paid 0.20 on the dollar to unsecured creditors, and the new 11 plan provides for say 0.10 on the dollar payments to unsecured creditors, do the unsecured creditors from the old 11 wind up getting 0.02 on the dollar for their original debt?
It depends on the negotiations during the BK proceedings. As a BK filer, you will have leverage and unsecured creditors are in a very weak position. The unsecured creditors do not have precedent to previous paymentm plan quote at .20. Therefore, negotiable.
It would seem that the previous unsecured creditor's claims from 11 years ago would then be their original amount less any amounts paid through the previous plan and not the 20 cents on the dollar amount that the previous plan provided for? Also I seem to recall that if a creditor didn't receive their plan payments they could petition the court to convert the 11 into a 7. Is this a problem with the new 11?
Possibly. Again, your negotiations will determine that fact.
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