If a proof of claim is filed and an objection is filed, the Court must
estimate the amount of the claim. See 502(c).
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.
Mark J. Markus
Sent: Tuesday, March 17, 2009 2:25 PM
To:
cdcbaa@yahoogroups.com
Subject: [cdcbaa] contingent debt in Ch. 13
I thought this was a stupid question until I stumped several people with it,
so I figured Id post it here and see if anyone bites.
What happens to contingent debt, such as personal guarantees, in a Ch. 13
case? I assume it gets scheduled and the obligation gets discharged, but
lets say the debtor has to do a 100% repayment because of the liquidation
analysis and proposes a plan that pays all the noncontingent debt, but
during the course of the Chapter 13 the corporation (primary obligation)
defaults on the debt, and the creditor makes a demand on the personal
guarantee. What happens then? Must the debtor modify the plan and
increase the payments in order to pay that creditor 100%?
If a proof of claim is filed by the creditor in the Ch. 13 bankruptcy, can
the debtor object to it based on the fact its contingent, or must that
creditor get paid along with the other creditors?
If the loan is called due (i.e. demand made on the guarantor) post petition,
does this then become a post petition obligation in the Chapter 13?
Etc, etc.
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
Toll Free: 1-866-576-6275
web:
http://www.bklaw.com/
This Firm is a Qualified Federal Debt Relief Agency (see what this means at
The post was migrated from Yahoo.