Legal Question in Bankruptcy in Georgia

Seeking clarification on how bankruptcy courts assess debts that have been written off. *I know the debt is still owed - that is not my question!* What I'd like clarification on is the following .... I defaulted on a loan which had a balance of $350,000 upon default. Per my credit report and last statement received from creditor, the balance of the loan after write off is $280,000. My credit reports states the beginning loan balance ($500,000) and the charge off amount ($310,000) but no mention of the of the ture balance at default ($350,000). The debt is not yet an active collection mode...though I suspect it will be sooner or later. How will the bankruptcy court assess the amount owed in this scenario... debt .... i.e. will they view the amount owed as $350K or $310K?


Asked on 5/09/17, 3:08 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Courts don't assess the amounts. In a chapter 7, if the debt is discharged, the balance becomes zero. In a chapter 13, the amount of the debt ($350K) - credit reports are irrelevant. In a 13 how much is paid depends on the plan and type debt but the calculation is based from the debt - it may range from 0 to 100 cents on the dollar, plus in some cases interest.

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Answered on 5/09/17, 4:12 pm


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