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Attorney2020
Attorney2020, Attorney
Category: Bankruptcy Law
Satisfied Customers: 714
Experience:  I am a practicing attorney. I have experience in business law, real estate law, bankruptcy and estates.
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We filed a Chapter 11 in 2001 and confirmed a plan in 2004.

Resolved Question:

We filed a Chapter 11 in 2001 and confirmed a plan in 2004. The adminsitrative expenses, secured and priority creditors were all paid. Our discharge was in 2005. We had 6 years fro 2004 to pay off unsecured creditors but were unable to pay off the unsecured creditors in full and never heard from any of them. Now we may be forced into another 11 for unpaid taxes. What happens with the unsecured creditors from our prior Chapter 11? Do we list them as creditors, has the statute of limitations run on these debts or can we be forced into a Chapter 7?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Attorney2020 replied 1 year ago.

Attorney2020 :

Hello:


 


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.


 


Please remember to rate my answer. I will gladly continue our discussion until you have gotten the information you need.


 


If you need further help, just reply to me via the “REPLY” or “CONTINUE CONVERSATION” button.


 


Please keep in mind that I am trying to help you understand and resolve your situation. I don't make the laws, I am just reporting or interpreting them, so the outcome may not be what you had hoped for.


 


Please be patient as I am typically working with several customers at any given time. Some answers take 5 minutes, some 35 minutes. But rest assured, I will get back to you.


 


I am not entering into an attorney client relationship, this is a public forum, and all posts


are available for public viewing. There is no duty of confidentiality that attaches to any posts. With that in mind, do not post any specific information you do not want available for public viewing. The information provided is not a substitute for a local attorney’s legal advice.




 

Customer:

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?

Attorney2020 :

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.


 


I hope this helps.


 


Please remember to rate my answer. I will gladly continue our discussion until you have gotten the information you need.


 


If you need further help, just reply to me via the “REPLY” or “CONTINUE CONVERSATION” button.


 


Please keep in mind that I am trying to help you understand and resolve your situation. I don't make the laws, I am just reporting or interpreting them, so the outcome may not be what you had hoped for.


 


Please be patient as I am typically working with several customers at any given time. Some answers take 5 minutes, some 35 minutes. But rest assured, I will get back to you.


 


I am not entering into an attorney client relationship, this is a public forum, and all posts


are available for public viewing. There is no duty of confidentiality that attaches to any posts. With that in mind, do not post any specific information you do not want available for public viewing. The information provided is not a substitute for a local attorney’s legal advice.



Customer:

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?

Attorney2020 :

Possibly. Again, your negotiations will determine that fact.


 


Please remember to rate my answer. I will gladly continue our discussion until you have gotten the information you need.


If you need further help, just reply to me via the “REPLY” or “CONTINUE CONVERSATION” button.


 


Please keep in mind that I am trying to help you understand and resolve your situation. I don't make the laws, I am just reporting or interpreting them, so the outcome may not be what you had hoped for.


 


Please be patient as I am typically working with several customers at any given time. Some answers take 5 minutes, some 35 minutes. But rest assured, I will get back to you.


 


I am not entering into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. With that in mind, do not post any specific information you do not want available for public viewing. The information provided is not a substitute for a local attorney’s legal advice.


 


Attorney2020, Attorney
Category: Bankruptcy Law
Satisfied Customers: 714
Experience: I am a practicing attorney. I have experience in business law, real estate law, bankruptcy and estates.
Attorney2020 and 3 other Bankruptcy Law Specialists are ready to help you

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