Bankruptcy: Understanding Critical Deadlines in Chapter 7 & 13

Filing of a Bankruptcy Petition by a Debtor can and will have significant impact upon the entities and/or individuals whom have property interest and/or money owed to them by that Debtor. The United States Bankruptcy Code is structured to allow for an efficient procedure through the bankruptcy process by Debtors. What does this mean for Creditors? Deadlines.
Once the filing occurs, the 341 Meeting of the Creditors is scheduled, and deadlines will immediately be placed upon both the Debtor and the Creditors. The 341 Meeting of the Creditors must be attended by Debtors but is voluntary for Creditors. The most important deadlines for Creditors to heed are as follows:

Deadlines

Objections to Confirmation (Ch. 13 Bankruptcy) – three (3) days prior to the 341 Meeting of the Creditors/Hearing on Confirmation
Challenge to Dischargeability of any debt – 60 days after the original 341 Meeting of Creditors date.
Non-Government Creditor Proof of Claims – 90 days after the original 341 Meeting of the Creditors date.
Government Creditor Proof of Claims – 180 days after the original 341 Meeting of the Creditors date.

What is a Proof of Claim?

 A proof of claim is a signed statement describing a Creditor’s claim against the Debtor. If you fail to file the proof of claim within the allowable timeframe, you may lose your chance to receive funds for your claim. Even if the creditor is listed within the bankruptcy petition/schedules, you must file the proof of claim. With that said, a secured creditor will retain rights in their collateral regardless of whether they file the proof of claim or not.

Consequences

 The most important reason for Creditors to pay attention to the deadlines given by the United States Bankruptcy Code is that once they lapse, you may lose your chance to file objections and/or a proof of claim.

If you believe you have a claim which needs to addressed within the bankruptcy process; either by an Objection to the Chapter 13 Plan, Whether it may be exempt from Discharge, or whether you believe a Proof of Claim is required, please contact our attorneys at Allen & Mills, PLLC, in order to preserve your claims and speak with an Attorney today.