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Chapter 13 - Treatment of Disputed Debts
correct
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Donny Brand
Sent: Friday, January 15, 2010 1:10 PM
To: cdcbaa@yahoogroups.com
Subject: RE: [cdcbaa] Chapter 13 - Treatment of Disputed Debts
Perhaps there is no dispute, but there is a question as to whether or not
the Debtor is personally obligated on the corporate debt in the first place.
He is not sure if he signed personal guarantees and I cannot tell based
upon the documentation that has been provided to me. Hence, I have listed
the potential creditors in Schedule F for notice purposes only.
What I understand from your answer is that I do not need to put anything in
the Chapter 13 plan itself to indicate as such. Now that the creditors have
been noticed, it is their responsibility to file a POC. If they dont file
the POC and the debt is otherwise dischargeable in a chapter 13 then
they are out of luck.
If a claim is filed, the claimant must attach evidence to the POC
establishing that the Debtor personally owes the money and if such
evidence is insufficient I can file a Motion to Disallow Claim.
Am I correct?
Donny Brand
Brand & Spellman PC
3836 E. Anaheim St.
Long Beach, CA 90804
562-438-7500
888-99-BKRPT (888-992-5778)
www.brandspellman.com
This message originates from the law firm of Brand & Spellman PC and may
contain legally privileged and confidential information intended solely for
the use of the addressee. If you are not the intended recipient and have
received this message in error, please notify us at
info@brandspellman.com and delete this email
from your system. Any unauthorized reading, distribution, copying, or other
use of this email or its attachments is strictly prohibited.
The post was migrated from Yahoo.
Perhaps there is no dispute, but there is a question as to whether or not the Debtor is personally obligated on the corporate debt in the first place. He is not sure if he signed personal guarantees and I cannot tell based upon the documentation that has been provided to me. Hence, I have listed the potential creditors in Schedule F for notice purposes only.
What I understand from your answer is that I do not need to put anything in the Chapter 13 plan itself to indicate as such. Now that the creditors have been noticed, it is their responsibility to file a POC. If they don chapter 13 then they are out of luck.
If a claim is filed, the claimant must attach evidence to the POC establishing that the Debtor personally owes the money and if such evidence is insufficient I can file a Motion to Disallow Claim.
Am I correct?
Donny Brand
Brand & Spellman PC
3836 E. Anaheim St.
Long Beach, CA 90804
562-438-7500
888-99-BKRPT (888-992-5778)
www.brandspellman.com
This message originates from the law firm of Brand & Spellman PC and may contain legally privileged and confidential information intended solely for the use of the addressee. If you are not the intended recipient and have received this message in error, please notify us at info@brandspellman.com and delete this email from your system. Any unauthorized reading, distribution, copying, or other use of this email or its attachments is strictly prohibited.
The post was migrated from Yahoo.
charset="windows-1251"
Schedule all creditors as disputed, then file claims objections. They will
have to produce personal guarantees or lose the claims objection.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
Donny Brand
Sent: Friday, January 15, 2010 12:34 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Chapter 13 - Treatment of Disputed Debts
Hello,
I have a chapter 13 plan that must be at 100% due to equity/best interests
of creditors test.
Debtor is a business owner. The debtors corporation has several dozen
vendors, where the Debtor may or may not have personal obligation due to
guarantees, etc.. Debtor simply doesnt know and doesnt have sufficient
documentation for me to be able to tell.
What I have done is list the potential creditors in Schedule F for notice
purposes scheduled as $0.00 then put a note in that to the extent
creditor believes Debtor is personally liable for the business obligation,
Debtor disputes such debt.
The plan does not account for repayment of such debts. Since the plan must
be 100%, if the creditors files a proof of claim and is able to establish
personal obligation, then the plan payments would go up substantially.
Should I put something in the plan that indicates that certain disputed
creditors are not going to be paid? If so, where?
Is there a better way to be dealing with this?
Thanks,
Donny Brand
Brand & Spellman PC
3836 E. Anaheim St.
Long Beach, CA 90804
562-438-7500
888-99-BKRPT (888-992-5778)
www.brandspellman.com
This message originates from the law firm of Brand & Spellman PC and may
contain legally privileged and confidential information intended solely for
the use of the addressee. If you are not the intended recipient and have
received this message in error, please notify us at
info@brandspellman.com and delete this email
from your system. Any unauthorized reading, distribution, copying, or other
use of this email or its attachments is strictly prohibited.
charset="windows-1251"
Message
Schedule all creditors as
disputed, then file claims objections. They will have to produce personal
guarantees or lose the claims objection.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
There is a significant difference between a personally guaranteedcorporate debt and one that may only be owing after a successful claim of alternliquidateddue to unresolved liability determination; I briefed this issue before EC afew years ago in the debt limits context. If a claim is filed, it is allowedor estimated by the court until you resolve through a motion to disallow. Regarding the personally guaranteed debt it is liquidated as to the amount and liability, butmay remain contingent depending on the terms of the contract. If a claim is filed, it is allowedunless you prevail in motion to disallow.Law Offices of Peter M. Lively
Personal Financial Law Center I
11965 Venice Blvd, Suite 301
Los Angeles, CA 90066-3977
310-899-0630
800-307-DEBT (3328)
Fax: 310-899-0632
A-Bankruptcy-Attorney.com
Personal Financial Law Center II
1706 Newport Boulevard, Suite B
Costa Mesa, California 92627-3073
Telephone: 949-650-DEBT(3328)
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
________________________________
To: cdcbaa@yahoogroups.com
Sent: Fri, January 15, 2010 12:33:47 PM
Subject: [cdcbaa] Chapter 13 - Treatment of Disputed Debts
Hello,
I have a chapter 13 plan that must be at 100% due to equity/best interests of creditors test.
Debtor is a business owner. The debtors corporation has several dozen vendors, where the Debtor may or may not have personal obligation due to guarantees, etc.. Debtor simply doesnt know tell.
What I have done is list the potential creditors in Schedule F for notice purposes scheduled as $0.00 then put a note in that to the extent creditor believes Debtor is personally liable for the business obligation, Debtor disputes such debt.
The plan does not account for repayment of such debts. Since the plan must be 100%, if the creditors files a proof of claim and is able to establish personal obligation, then the plan payments would go up substantially.Should I put something in the plan that indicates that certain disputed creditors are not going to be paid? If so, where?
Is there a better way to be dealing with this?
Thanks,
Donny Brand
Brand & Spellman PC
3836 E. Anaheim St.
Long Beach, CA 90804
562-438-7500
888-99-BKRPT (888-992-5778)
www.brandspellman. com
This message originates from the law firm of Brand & Spellman PC and may contain legally privileged and confidential information intended solely for the use of the addressee. If you are not the intended recipient and have received this message in error, please notify us at info@brandspellman. com and delete this email from your system. Any unauthorized reading, distribution, copying, or other use of this email or its attachments is strictly prohibited.
There is a significant difference between a personally guaranteed corporate debt and one that may only be owing after a successful claim of alter ego liability. For the later, it is contingent and it is unliquidated due to unresolved liability determination; I briefed this issue before EC a few years ago in the debt limits context. If a claim is filed, it is allowed or estimated by the court until you resolve through a motion to disallow. Regarding the personally guaranteed debt it is liquidated as to the amount and liability, but may remain contingent depending on the terms of the contract. If a claim is filed, it is allowed unless you prevail in motion to disallow. You haven't given facts supporting a "dispute" Peter M. Lively, J.D./M.B.A.Law Offices of Peter M. Lively Personal Financial Law Center I11965 Venice Blvd, Suite 301 Los Angeles, CA
90066-3977 310-899-0630 800-307-DEBT (3328)Fax: 310-899-0632 A-Bankruptcy-Attorney.com
Personal Financial Law Center II1706 Newport Boulevard, Suite BCosta Mesa, California 92627-3073Telephone: 949-650-DEBT(3328)
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
From: Donny Brand <dbrand@brandspellman.com>To: cdcbaa@yahoogroups.comSent: Fri, January 15, 2010 12:33:47 PMSubject: [cdcbaa] Chapter 13 - Treatment of Disputed Debts
Hello,
I have a chapter 13 plan that must be at 100% due to equity/best interests of creditors test.
Debtor is a business owner. The debtors corporation has several dozen vendors, where the Debtor may or may not have personal obligation due to guarantees, etc.. Debtor simply doesnr me to be able to tell.
What I have done is list the potential creditors in Schedule F for notice purposes scheduled as $0.00 then put a note in that to the extent creditor believes Debtor is personally liable for the business obligation, Debtor disputes such debt.
The plan does not account for repayment of such debts. Since the plan must be 100%, if the creditors files a proof of claim and is able to establish personal obligation, then the plan payments would go up substantially.
Should I put something in the plan that indicates that certain disputed creditors are not going to be paid? If so, where?
Is there a better way to be dealing with this?
Thanks,
Donny Brand
Brand & Spellman PC
3836 E. Anaheim St.
Long Beach, CA 90804
562-438-7500
888-99-BKRPT (888-992-5778)
www.brandspellman. com
------------ --------
This message originates from the law firm of Brand & Spellman PC and may contain legally privileged and confidential information intended solely for the use of the addressee. If you are not the intended recipient and have received this message in error, please notify us at info@brandspellman. com and delete this email from your system. Any unauthorized reading, distribution, copying, or other use of this email or its attachments is strictly prohibited.
The post was migrated from Yahoo.
Hello,
I have a chapter 13 plan that must be at 100% due to equity/best interests
of creditors test.
Debtor is a business owner. The debtor's corporation has several dozen
vendors, where the Debtor may or may not have personal obligation due to
guarantees, etc.. Debtor simply doesn't know - and doesn't have sufficient
documentation for me to be able to tell.
What I have done is list the potential creditors in Schedule F for notice
purposes - scheduled as $0.00 - then put a note in that to the extent
creditor believes Debtor is personally liable for the business obligation,
Debtor disputes such debt.
The plan does not account for repayment of such debts. Since the plan must
be 100%, if the creditors files a proof of claim and is able to establish
personal obligation, then the plan payments would go up substantially.
Should I put something in the plan that indicates that certain disputed
creditors are not going to be paid? If so, where?
Is there a better way to be dealing with this?
Thanks,
Donny Brand
Brand & Spellman PC
3836 E. Anaheim St.
Long Beach, CA 90804
562-438-7500
888-99-BKRPT (888-992-5778)
www.brandspellman.com
This message originates from the law firm of Brand & Spellman PC and may
contain legally privileged and confidential information intended solely for
the use of the addressee. If you are not the intended recipient and have
received this message in error, please notify us at
info@brandspellman.com and delete this email
from your system. Any unauthorized reading, distribution, copying, or other
use of this email or its attachments is strictly prohibited.
Hello,
I have a chapter 13 plan that must be at 100% due to equity/best
interests of creditors test.
Debtor is a business owner. The debtor’s
corporation has several dozen vendors, where the Debtor may or may not have
personal obligation due to guarantees, etc.. Debtor simply doesn’t
The post was migrated from Yahoo.