Is There a specific amount of time Creditors have to make a claim ??

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pickles

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I am into my second month  of my Bankruptcy . I know all creditors and been given paperwork etc . Today I received a call from one of the Creditors ( local office ) asking for Sept Payment ??  I directed them to the Trustee , but my  question is they have some of my furniture as security , can they at this late make a claim to repossess..it have been  48 days since filing ?   

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NotATrust-E

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Re: Is There a specific amount of time Creditors have to make a claim ??
« Reply #1 on: September 19, 2014, 09:00:53 PM »
A creditor can file a claim up until the dividends are distributed.

The simple answer to your second question is that reposession of personal property like furniture is rare. It's usally too much work for not enough money. There's no timeline for when they need to claim except for the exception below.

A secured creditor can realize upon their security whenever they want to do so. I'm guessing they are subject to provincial laws regarding reposession. If the trustee gives notice to the creditor, they have 30 days to respond. After that, the trustee can do whatever they want with the furniture, including selling back to you for $1. The creditor can also sell their claim, abandon it or turn it into an unsecured claim. The trustee might not give this 30-day notice because the trustee isn't interested in doing all the paperwork and it's not required.

However... Furniture securities can get interesting. Unless the security agreement is really specific about what the security is i.e. a serial number, it's basically impossible to enforce. Let's say that you bought a black leather couch. Unless the security document states speficially what it is, you can go get a black leather couch from a charity shop and give it to them. There's no way of them determining if it is the right one. Aside from rent-to-own places like Aarons, you don't see a lot of places that do this aside from places like Teppmans in Ontario.

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pickles

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Re: Is There a specific amount of time Creditors have to make a claim ??
« Reply #2 on: September 20, 2014, 01:30:11 AM »
Thank You ( AGAIN ) for your reply .  It's nice to have a place to ask questions and get advise , I really do not want to keep calling the Trustee .  I  am hopeful that I will not hear from the creditor about the furniture . Now time to get my life back on track . ;D

 

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