Bankruptcy Creditors in a Chapter 12 Bankruptcy

As a Tampa FL bankruptcy attorney can tell you, creditors are given 90 days from the date of the meeting of creditors in a Chapter 12 bankruptcy to file their claims.

There are four kinds of claims that are exceptions to this rule:

• Claims that are the result of rejection of executory contracts.
• Unsecured claims can be filed if they are the result of judgments that were filed 30 days following the expiration of the appeal period.
• Claims filed on behalf of incompetents or infants.
• Governmental unit’s claim.

A trustee, debtor or any other interested party can file a claim on behalf of a creditor, if the creditor did not file a proof of claim during the 90-day period. The creditor’s claim will take precedence over a claim filed on its behalf, if the creditor files a claim.

Good Faith Negotiations

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires creditors to negotiate with debtors to come up with reasonable arrangements concerning the debt structure. A creditor’s claim is subject to a reduction of 20 percent or less if the creditor does not negotiate with a debtor.

Priority Claims

According to a Tampa FL bankruptcy attorney, claims are considered by priority in a Chapter 12 bankruptcy. Following is a listing of claims arranged by priority:

• Wages, salaries or commissions totaling the same as or less than $10,950 that were earned during the 180 days before the business ceased to operate or the bankruptcy was filed.
• All taxes including local, state or federal.
• Deposits amounting to the same amount or less than $2,425 for the rental, lease or purchase of services or property that were not rendered or delivered.
• Claims filed by United States fishermen or farmers in the amount of or less than $5,400.
• Any contributions made to employee benefit programs within the 180 days before the business ceased to operate or the bankruptcy was filed.

Kinds of Creditors

There are three kinds of bankruptcy creditors: priority, unsecured and secured. All bankruptcy creditors are required to negotiate with debtors in good faith.

Priority Creditors

After secured creditors are paid and exemptions are taken care of, priority creditors are paid first from the remainder of the debtor’s estate. A priority creditor may include certain tax claims, wage claims and domestic support claims. An example of a domestic support claim includes an ex-spouse for support or alimony.

Unsecured Creditors

An unsecured creditor has no collateral for the debt. For instance, a financial institution or bank that issues credit cards may be an unsecured creditor.

Secured Creditors

A secured creditor holds collateral for a debt. For instance, a lien on either real or personal property. There are three kinds of liens that a secured creditor can hold:

• A judicial lien such as a garnishment or judgment;
• A statutory lien such as a tax or mechanics lien; or
• A consensual lien such as a UCC-I statement or a security agreement.

Working with a Tampa FL Bankruptcy Lawyer

If you would like to speak with a bankruptcy attorney, please call the office of Robert Savage at 813-200-0013.