Importance Of The Claims Bar Date In A Bankruptcy

Importance Of The Claims Bar Date In A Bankruptcy

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The Claims Bar date is indispensable in a bankruptcy. All the creditors are supposed to make a claim on the debtor’s estate till this date or they will not be allowed to collect their debt. This date gets generated automatically after the filing of the case, and first appears on the Notice of Filing. The creditors, who receive the notice of bankruptcy, must make a claim within 90 days. In case of improper bankruptcy notification, a creditor might be allowed to make a late claim. Governmental Units also have a claims bar date, though they get additional time to make claims.

Despite receiving a claims form and instructions along with the Notice of Filing, some creditors fail to file the claim or don’t file it properly. Thus, with the help of your attorney, you can make objections to unfounded claims, incorrectly filed claims, or to the ones stating inaccurate amounts of debt. Knocking out claims can save significant amounts of money for Chapter 13 debtors, thus, creating an opportunity of coming out of bankruptcy by paying. Debtors can payout of bankruptcy by paying every owed penny to all the creditors who have made claims. Once no one is left to be paid, the case gets closed.

To know more about the Claims Bar date and its effects on your bankruptcy, contact the Recovery Law Group at www.staging.recoverylawgroup.com or on 888-297-6203.


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    2019-11-27T10:24:08+00:00