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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
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Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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A creditor who was not listed in the debtors Chapter 13 bankruptcy

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A creditor who was not listed in the debtor's Chapter 13 bankruptcy filed a proof of claim. (1) If the debtor accepts the creditor's claim at face value, should the debtor's attorney just add the creditor to the list of creditors who are to be paid, or should the attorney still demand validation from the creditor. (2) If the creditor is added to the bankruptcy petition, would the debtor be required to file an amended Schd D/E/F (depending on type of creditor), pre-confirmation Chapter 13 Plan Modification, and notice?
(1) If the debtor accepts the creditor's claim at face value, should the debtor's attorney just add the creditor to the list of creditors who are to be paid, or should the attorney still demand validation from the creditor.

A: It's up to the debtor to tell the attorney whether or not the claim is valid. If it's not, then the attorney can file an objection to the proof of claim. If no objection is filed, then the claim is deemed valid.

(2) If the creditor is added to the bankruptcy petition, would the debtor be required to file an amended Schd D/E/F (depending on type of creditor), pre-confirmation Chapter 13 Plan Modification, and notice?

A:The Chapter 13 plan must "provide for" the additional claim, and the additional claim must not push the amount of secured ($1,081,400) or unsecured ($360,475) debt over the statutory limits. Otherwise, the debt will not be discharged at the conclusion of the Chapter 13 plan.

Hope this helps.

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Customer: replied 4 years ago.

Thank you for your response. When you say "provide for," does the trustee make adjustments for the Chapter 13 plan payout, or must the debtor submit a modified plan?

Modified plan by debtor. "Provide for" is a term of art, because dependent upon how the plan is structured, the provision may be nothing more that a statement that the creditor will receive nothing on the claim. But, if the debt is not provided for in some manner, either expressly or as part of a class of debts, then it is not discharged, when the plan is completed.

Hope this helps.
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