Chapter 13 bankruptcy proof of claim

Chapter 13 bankruptcy proof of claim is not debtor’s or in simple terms the person who is filing for the protection’s concern, instead it is creditor’s responsibility to file the claim in the court or otherwise they loose the right to any payment that you owe to them as a debtor. As a debtor you are allowed to have a grace period of 100 days before your creditors can meet up to you and can file proof of claim.

You as a debtor might not have the responsibility to file for proof of claim but then it is important to know that if there are unclaimed debts or bills which have not been mentioned in the proof claim after the case is discharged then it is your responsibility to dispose these debts. These debts will not be covered under the protection.

Proof of claim again is divided into two categories. One is secured debt and another is unsecured debt. Secured debt gets first priority in the claim. The secured debts are those where collateral is pledged against the credit given. The payment plan has to provide at least the value of the collateral pledged to the holder of the secured claim. Or in case if the secured claim is to buy the collateral (for e.g. home loan) and the debt was incurred in that specific time frame before filing for chapter 13 then plan should have the provision of providing solution to pay the full payment of debt and not just the value of collateral. Hence secured debts are cleared first.

For the unsecured claims the debtor need not put up a full payment plan but debtor should commit to pay all projected “disposable income”, excluding the reasonable amount for the welfare of himself or the dependents and the child welfare allowance within the applicable commitment time frame. Usually the unsecured claim creditor should receive those payments which would actually cover the amount that debtor would receive on liquidating the assets under chapter 7.