What does this mean???

[apie1]

IL

My friends bankrucpty is over, but there is a part under schedule F (Creditors holding unsecured nonpriority claims) where two of the creditors have the box marked "disputed" and listed as notice only. Both creitors are from an auto accident that happened about 6 months ago. I do not know if this will have any effect considering the bankruptcy is over, but could someone explain that part to me? I understand the contigent box and unliquidated box as to the effect of bankrutpcy, but can't figure out the disputed box to the effect of bankrucpty. Any advise would be appreciated.

 

[seniorjudge]

IL

My friends bankrucpty is over, but there is a part under schedule F (Creditors holding unsecured nonpriority claims) where two of the creditors have the box marked "disputed" and listed as notice only. Both creitors are from an auto accident that happened about 6 months ago. I do not know if this will have any effect considering the bankruptcy is over, but could someone explain that part to me? I understand the contigent box and unliquidated box as to the effect of bankrutpcy, but can't figure out the disputed box to the effect of bankrucpty. Any advise would be appreciated.

Ask the trustee.

 

[zippysgoddess]

As Judgey said, you need to talk to the Trustee who handle your case. Many times those types of debts are not dischargeable if they were for personal injury or major property claims.

 

[Ladynred]

The creditors don't make ANY marks on a debtor's bankruptcy petition. If that box is checked it's because your friend's lawyer did so. That 'disputed' box means simply that the claim is disputed if the debtor and the creditor do not agree about the existence or amount of the debt.

Is your friend being sued by the accident victims or their insurance companies ??

 

[azatty]

In a Chapter 7, the "disputed" box doesn't have any real effect on matters, other than alert the trustee to the possibility that s/he should object to that creditor's claim if there is a distribution to be made.

In a Chapter 11 the disputed box is a little bit of magic that debtors' attorneys use to ambush creditors, as a claim that is scheduled "disputed, contingent, or unliquidated" is not subject to the automatic filing provisions of Chapter 11, and the creditors so scheduled must file a proof of claim to have their claim allowed.

 

[Ladynred]

Thanks for the info Azatty

By the way, have you seen this ?
http://www.txwb.uscourts.gov/opinions/opdf/05-20097-frm_Guillermo Alfonso Sosa and Melba Nelly Sosa.pdf

I had a good laugh reading that one !

 

[azatty]

I hadn't seen that decision, but it does communicate the contempt that many bankruptcy judges have for the new act. One division of the Georgia bankruptcy court entered a general order on October 17, 2005 soundly criticizing the act and stating that bankruptcy attorneys in that division did not have to comply with the "debt relief agency" provisions of the Code, because if Congress intended to include lawyers, it would have expressly included lawyers in the definition.

 

[Ladynred]

Hmm.. I"ll have to look that one up

Congress doesn't 'get' it.. all THEY care about are the massive 'contributions' paid to them by the likes of MBNA and other big banks to shove that disgusting peice of legislation thru. Heaven forbid they should have some backbone to resist big business or even really THINK about the people who put them in those D.C. chairs. Hopefully many of them will be voted OUT this year.