When you file either an asset Chapter 7 case or a Chapter 13 case, your creditors can file a claim. The claim will state, who the creditor is, where they can be reached, the amount owed to them, why it is owed, and proof of the debt. Creditors file claims in cases, so the trustee knows who to pay.
There are rules for filing claims. Although creditors can file claims throughout the case, there are deadlines for when the claim will be considered timely. Every creditor must file a claim, to be paid through the case. If they do not file the claim, they will not be paid. This includes secured creditors, tax debt, and unsecured creditors.
Creditors have different statuses, which they can report on the claim. These include unsecured creditors, secured creditors, and priority creditors. Unsecured creditors are your credit cards, medical debt, and personal loans. Secured creditors usually are mortgages, vehicle loans, or recreational loans tied to property. Priority debt is most commonly tax debt and domestic support obligations.
What happens if the creditor's claim is incorrect or late? Claims can be objected to. You would explore whether you should object with your attorney.
What happens if a creditor doesn’t file a claim but wants to be paid through your case? For example, say you filed for a debt owed to your parents, but you want them to receive something out of the distributions in your case. You can file a claim for your creditors.
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