Secured creditors must still file timely bankruptcy claims
If a Florida resident has secured debt, the creditor doesn’t have to file a proof of claim with a bankruptcy court. However, an Ohio bankruptcy court ruled that a secured creditor must still file a claim on time to be entitled to repayment under a Chapter 13 plan. In a Chapter 13 plan, a debtor uses regularly received income to make payments over a three or five year period.The case in question was filed in September 2016, and involved a creditor called Tax Ease Ohio LLC.
The company had a claim against the couple who filed for bankruptcy for unpaid real estate taxes. Tax Ease failed to file a claim by the date provided despite knowing about the deadline. It was not allowed to collect payments as part of an approved plan because it did not meet criteria for filing a late claim. Despite this, the company will still have the ability to enforce its tax lien after the repayment period ends.
Debtors who are looking for debt relief may find what they are looking for by filing for bankruptcy. However, it is important to know that some debts are not discharged even after the bankruptcy case concludes.
During the repayment period, debtors may wish to talk to their secured creditors about modifying the terms of a current loan. It may be possible to come to an agreement that may allow an individual to make payments that are more affordable. In some cases, refinancing a loan or otherwise modifying loan terms may result in a creditor ceasing efforts to foreclose on a property. a lawyer can often described other potential benefits of a Chapter 13 bankruptcy.