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Frequently Asked Questions About Claims And Payments To Creditors
Why are you paying one of my creditors twice?
I am a debtor and the court confirmed my Plan, yet I keep getting late notices from a creditor?
The Internal Revenue Service kept my tax refund. Can they do that?
Answers To Questions About Claims And Payments to Creditors
I am a creditor in a chapter 13 case and I would like to know when I am going to be paid. (or I am a debtor, why hasn't the trustee paid this claim)?
a)If the Plan is not confirmed, be sure to file your proof of claim and
wait for the Notice of Confirmation Hearing. Claims cannot be paid until
after the Plan is confirmed.
b)Once the Plan is confirmed, the court will enter an Order Confirming
Plan, followed by an Order Allowing and Disallowing Claims and Ordering
Disbursements. Together, these orders will generally explain how each
claim is being treated and in what order it will be paid. If your claim
is not listed on the "Exhibits" to the Order Allowing and Disallowing
Claims and Ordering Disbursements, then check whether a claim was filed
and registered, or whether the court entered a separate Order Allowing
or Disallowing this particular claim. The trustee's office will be happy
to look into the matter. Please call the claims department with any questions
you might have.
c) For cases filed on or after October 17, 2005 a secured creditor may receive pre-confirmation adequate protection disbursements.
d)The trustee pays only those claims which were filed, allowed and dealt
with under the confirmed Plan.
(1) If a claim was not filed, it is unlikely that it will be paid.
(2) The trustee may object to tardily filed claims.
Why are you paying one of my creditors twice?
a) Either a creditor being paid under the confirmed Plan filed a split claim or your attorney filed a Motion to Determine Secured Status on your vehicle, which causes the claim to be split. You are paying the secured portion in full with interest, and a specified percentage on the unsecured portion.
b) In cases filed on or after October 17, 2005 a secured creditor may be paid separately for regular ongoing payments and the pre-petition delinquent amounts.
I am a creditor and I received an Order Allowing And Disallowing Claims And Ordering Disbursements. I noticed that the amount deducted for pre-confirmation adequate protection payments is in error?
Please send the trustee a letter, with copies to the debtor and debtor's attorney, stating the amount you actually received from the debtor for adequate protection. The trustee will use the creditor's statement of the amount received for adequate protection. If the debtor disputes this amount, he must work it out with the creditor and inform the trustee of the results. The trustee will take the necessary steps to correct the amount in his records and, if appropriate, with the court.
I am a debtor and the court confirmed my Plan, yet I keep getting late notices from a creditor?
Have the creditor call our claims department to verify that they are included in the confirmed Plan. If they are not included in the plan, contact your attorney. Perhaps he could write them a letter.
The Internal Revenue Service kept my tax refund. Can they do that?
Please review the Order Confirming Plan to determine how the Internal Revenue Service claim was to be treated. The Internal Revenue Service has requested that our office tell debtors to contact the Special Procedures staff of the Internal Revenue Service in Jacksonville (904-665-0844) or Fort Lauderdale (954-423-7830) directly. Any refunds sent here are subject to the trustee’s review.
My chapter 13 Plan was confirmed, but it provided for only a 20% dividend to general unsecured creditors. Why do I have to continue paying on the Plan after these creditors have received their 20%?
For cases filed prior to October 17, 2005 the 20% figure was generally recognized as the minimum distribution which is considered meaningful to general unsecured creditors and it is not etched in stone. The court's Order Confirming Plan provides, in part, for the debtor to pay a certain amount for a specific number of months. The Plan is terminated only after all payments due under the confirmed Plan are complete or all claims are paid a 100% dividend.
I am a creditor and my secured claim which I filed last month was valued by the debtor. Do I need to amend my Proof of Claim?
The court's order valuing the secured claim is controlling, however, an amended proof of claim indicating the amount of secured and unsecured indebtedness which is in line with the court's order is appreciated. If an amended proof of claim is not filed, however, our office will bifurcate the original proof of claim in our records and pay it according to the court's order valuing the claim.
I am a mortgage creditor and I received the Order Allowing And Disallowing Claims And Ordering Disbursements and I noticed the amount of pre-petition arrears is in error. What are you going to do about it?
The trustee will endeavor to make sure that all claims are paid according to the proof of claim which is filed in the case. It is most helpful if creditors, especially mortgage creditors, send a copy of their proof of claim or amended proof of claim to the trustee. If an error is made the trustee will take the necessary steps to correct the error in his records and, if appropriate, with the court.
If the secured portion of my car loan is paid in full through the Chapter 13 Plan, can I have my title to my car?
Believe it or not, it depends on the individual creditor as to whether they are willing to release the title. If a title is released and the case is subsequently dismissed, the creditor has no recourse. Some courts are leaning more toward the release of the title. Perhaps your attorney could file a motion with the court to have the title released.
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