When a person chooses to get rid of their debt by filing for bankruptcy, the best way is to hire a lawyer. This is so because bankruptcy is a complicated process involving several legalities and documents. Experienced lawyers such as those of the Los Angeles bankruptcy law firm Recovery Law Group, make it a point to inform every creditor mentioned in the list of the impending bankruptcy filing of their client. In case the client chooses to file under Chapter 13, any secured creditor can claim against the debtor getting a discharge. However, there is a catch. They should file the claim prior to the deadline mentioned in the notice informing them of the impending bankruptcy. Many times, creditors neglect the deadline and file claims as per their fancy. This has been restricted by the Ohio Court in the latest ruling.
In the abovementioned case, the couple filing for Chapter 13 owed property tax, but the company which held the debt failed to file a claim against the couple despite being informed of the deadline through the bankruptcy intimation notice. After the deadline had passed, the court declined the company’s claim to receive payment from the Chapter 13 repayment plan. Though the company had a lien on the home, which would have survived the Chapter 13 bankruptcy, the court’s decision is seen as a step in the right direction by consumers trying to get rid of their debt through Chapter 13 bankruptcy.
In case you decide to pursue this chapter of bankruptcy to get rid of your debts, you should seek the counsel of experienced bankruptcy lawyers Los Angeles at 888-297-6023.