frequently asked questions by creditors
- Do I need to go to the Meeting of Creditors?
- How do I monitor the case and find out its status?
- How and When Do I file a Proof of Claim?
- I received the Notice of the Debtor’s bankruptcy but I do not know the Debtor’s account number with our company how do I find this out?
- How do I know whether I should file a “Dischargeability” Complaint?
- As a Creditor, what can I do?
- I own stock in the Debtor, why do I not get notices of the case and will I receive any money if the Trustee determines that the Debtor has assets?
Do I need to go to the Meeting of Creditors?
No. The Meeting of Creditors is an opportunity for you to ask the debtor questions regarding his/her financial status. Your attendance is not required and none of your rights are jeopardized by not attending.
How do I monitor the case and find out its status?
You can find out about the case by going to the court’s website. On the website, go to “Pacer” and sign up for an account to access the Court’s docket in the case. The cost is minimal and everything of importance in the case is listed on the docket, e.g. sales, claims bar date, etc.
How and When Do I file a Proof of Claim?
Usually the “Notice of Chapter 7 Case, Meeting of Creditors, & Deadlines” will advise you not to file a proof of claim unless you receive a notice to do so. Occasionally, however, the notice will state a deadline, so read it carefully. In most cases, the Court mails a separate notice, “Notice of Possible Dividends and Deadline to file a Proof of Claim”, that will state the deadline to file a proof of claim and include the proof of claim form. If you do not receive this notice, it may not be worthwhile to file a claim. To obtain the form, go to the Court and request the form. The form is also filed with the Court.
I received the Notice of the Debtor’s bankruptcy but I do not know the Debtor’s account number with our company how do I find this out?
The only way to find out the account number is to review the actual schedules filed by Debtor. The only way to access the schedules is to request the court file at the Court or through Pacer, on line. The Debtor’s attorney may provide you with this information also.
How do I know whether I should file a “Dischargeability” Complaint?
These are complex legal issues and you will probably need to consult an attorney who specializes in bankruptcy to analyze your particular situation. The grounds for filing a complaint objecting to the Debtor’s discharging his/her debt to you can be found at 11 U.S.C. § 523. The grounds for objecting to the Debtor obtaining a discharge in general are located at 11 U.S.C. § 727. The most common ground of discharge ability complaints is that the Debtor misrepresented a fact in incurring the debt to you. A “broken promise” to repay the debt is not misrepresentation.
As a Creditor, what can I do?
Creditors have the right to examine the Debtor in more detail through obtaining an order from the Court to examine the Debtor pursuant to Bankruptcy Rule 2004. If you believe the Debtor may be misrepresenting his/her assets or misrepresenting his/her financial dealings prior to filing, contact my office with the information (see below), review the Debtor’s schedules and statement of financial affairs from the Court, attend the Meeting of Creditor’s, and/or examine the Debtor yourself through a 2004 examination.
I own stock in the Debtor, why do I not get notices of the case and will I receive any money if the Trustee determines that the Debtor has assets?
Usually, Debtor corporations that file bankruptcy do not list stockholders in their schedules. Consequently, stockholders are not on the Court’s mailing matrix and do not receive notices of events in the case. To receive notices, prepare and file with the Court a “Request for Special Notice.” Serve a copy of this document on the Debtor, Debtor’s attorney, chapter 7 trustee and U.S. Trustee. Federal Rule of Bankruptcy Procedure §2002(g)(1).
Stockholders will generally not receive a distribution from the estate because stockholders are considered “equity” holders in the Debtor, or the same as the Debtor itself. This is the lowest priority level in the U.S. Bankruptcy Code’s distribution scheme. Stockholders and the Debtor itself do not receive anything from the estate until all secured, unsecured, priority and administrative claims are paid in full, with interest. Many stockholders consider the date of the petition filing to be the date to “write off” their investment in the Debtor.