Legal Question in Bankruptcy in Indiana

Total paid back in a chapter 13

When my husband and I filed for Ch. 13 bankruptcy, we were set up on a plan that makes us pay back 9.8% of our debt, which came to about $5,000 over the course of three years. I recently found out that only 1/2 of our creditors filed a proof of claim in our Chapter 13 case. Does that mean we are only required to pay back a total of $2,500, instead of $5,000? Or does that mean the creditors who filed will get double what was written in the plan? I remember our attorney saying something about people finishing their plans early because creditors don't always file a proof of claim, but I don't know how that works.


Asked on 7/22/03, 7:57 am

1 Answer from Attorneys
John Bator Bator Redman & Shive

Re: Total paid back in a chapter 13

The fact that not all crditors filed claims does not mean you pay less. Instred, those that filed claims will receive a higher percentage of their debt.

If there are sufficient funds to pay those who filed claims in full, then you might be fortunate and have to pay less and may get done early. Have your attorney do the math and advise you-you paid for his assistance

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Answered on 7/22/03, 3:55 pm


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