The need to file proof of claims in a bankruptcy case is determined by the creditor and the debt they are claiming. According to Maryland laws, the proof of claims must be filed by all unsecured creditors within a ninety-day period following the initial meeting of the creditors. Any failure to file this claim forfeits the creditor’s claim to payment.
Chapter 13 Guidelines
Lien holders such as a mortgage lender or auto finance company don’t possess the need to file proof of claims in a bankruptcy case. These accounts are secured by real property or an automobile. They require a title transfer in order for the transaction to be completed. If the consumer doesn’t fulfill the loan contract, the lien holder can order a foreclosure or repossession of the property. These accounts are included in the bankruptcy claim automatically.
Government Creditors With a Claim
All government-based creditors such as those offering student loans have a one hundred-eighty day deadline. The deadline is based on the date in which the bankruptcy claim was filed with the court. If these creditors don’t meet the deadline, it is possible that they could acquire an extension from the court. However, they must provide a valid reason for this request.
Disputing the Proof of Claim
Debtors or the trustee assigned to the bankruptcy case may dispute the balance owed. The balance is listed on the proof of claim submitted by the creditor. However, if the consumer or trustee has valid proof of an alternative balance, they can file an objection or dispute to this claim. They must present evidence that supports their objection and provides the correct balance. For example, if the creditor provided a receipt with a new balance to the consumer, they could use the receipt as evidence.
Consumers who choose to file for chapter 13 should verify all debts and balances before filing a claim. This could prevent delays due to inaccurate information. The consumer is required to present evidence of all debts to the court. It is up to them to correct any inconsistencies provided by their creditors. To learn more about the need to file proof of claims in a bankruptcy case, visit website for more information.
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