What Happens To Unsecured Creditors If They Don’t File A Claim?

One of the many benefits of filing a chapter 13 bankruptcy case is the ability to repay creditors less than what's owed in many cases. Some cases don't require a full payment to unsecured creditors. This all depends upon the income and expenses of the debtor as well as the debtor's ability to repay the entire debt over a three to five-year period. In most cases, however, unsecured creditors are paid less than what is owed and as little as 10%. Once a chapter 13 bankruptcy case is filed, the clerk of U.S. Bankruptcy Court will send out a notice of filing to all the creditors listed on the debtor's petition. There is a timeframe whereby creditors must file a proof of claim. A proof of claim + Click Here For Read More

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