The Claims Bar Date is vitally important in any bankruptcy because it establishes the date by which all creditors must make a claim on your estate or be barred from collecting their debt. This date first appears on your Notice of Filing, which is automatically generated when your case has been filed. Any creditor who received notice of the bankruptcy must provide a claim within 90 days or be barred from collecting the debt owed. If a creditor is not properly noticed, they may be allowed to bring a late claim. Governmental Units are provided additional time to bring claims, but have a claims bar date as well.
Despite the fact that the creditors receive a Notice of Filing that comes with a claims form and instructions, some creditors never file their claim or file their claim improperly. You or your attorney can object to claims that are unfounded, incorrectly filed or state inaccurate sums owed. Knocking out claims can save Chapter 13 debtors significant amounts of money and can sometimes create the possibility of ‘paying out’ of a bankruptcy. Paying out occurs when all creditors who have filed claims get paid every penny they’re owed. When this happens, and there is no one left to pay, the case is closed.
If you would like to schedule a free initial consultation to learn more about how the Claims Bar Date will effect your bankruptcy, please contact us at 904-685-1200 or email me.