There are several things that are required when you file a Missouri bankruptcy. One of the basics requirements is that you list all of your creditors. By law, they have the right to know that you have filed for bankruptcy protection. In addition, it also puts the creditors on notice that they may not contact you again regarding the debts that you owe to them.
A St. Louis Bankruptcy Lawyer Can Make Sure Your Creditors Play by the RulesOnce the creditors receive notification, they then have the opportunity to file documentation showing how much you owe. This document is called a ‘proof of claim.’ It gives the name and address of the creditor, a description of the debt, and the amount owed. So long as the creditor properly files this document with the court in a timely manner (creditors are given about four (4) months to file their paperwork), this claim is used by the court to determine the order in which it receives any disbursements.
If the proof of claim is improperly filed, or if the document shows an incorrect amount, there is an opportunity to object. This usually involves a request for further documentation from the creditor to prove that the debt actually exists. For instance, it is part of the Trustee’s job in a St. Louis Chapter 13 bankruptcy to analyze each proof of claim that is submitted to determine if it is was properly filed. If it is not properly filed, the Trustee will object on your behalf.
It is also very important to make sure that creditors file such claims when the debt involves a secured asset you wish to retain. If for instance you file a St. Louis Chapter 7 bankruptcy, and you want to keep your car, it is necessary for the car note creditor to file its claim so that a reaffirmation agreement can be made.
The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company have been providing expert bankruptcy legal services for years. Our goal is to make sure that you understand how this area of law works so that we can guide you through the entire process from start to finish.