A Notice of Filing Bankruptcy is generated in every bankruptcy case and goes out to all of the debtors various creditors. That notice has important dates on it, such as the date of the “Meeting of Creditors” and a “Deadline to File Object to Exemptions”. The notice also typically establishes the “Claims Bar Date”. The Claims bar date establishes a date by which all creditors must have filed claims in your case. If there is no claim made, then the creditors can never collect. Because many creditors don’t file claims, it is possible to pay less in a Chapter 13 than paying individual creditors through settlement negotiations. This is especially true with residential mortgages.
If you have multiple debts and would like to learn more about the claims bar date in bankruptcy, contact a Jacksonville Beach Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.