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Claims in a chapter 7 asset case

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Hunterman

Junior Member
What is the name of your state?Minnesota

I have a chapter seven asset case. I have paid the trustee for the non-exempt property. The amount I paid the trustee was less than $1000.

My debts consisted of my mortgage, my student loan, and credit card debt (no store cards, just Visas and Mastercards). I have never missed a mortgage payment or a student loan payment.

Here are my questions:

When the trustee distributes the funds are they distributed equally amongst all creditors or is the amount they each receive based on the amount that is owed?

Would any of the creditors (mortgage holder, student loan company, or the credit card companies) have preferance?

Should I encourage my bank (it's a small home-town bank) and student loan company to make sure they file claims?
 


bigun

Senior Member
It'll be divided equally among the creditors with the secured creditors getting preference. Unsecured creditors get what's left.
If you've never been late with the mortgage or student loan, those lenders would have no reason to file a claim.
I'd stay out of it-let the trustee handle it. A $1000 recovery split who knows how many ways is no biggie.
 

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