Asked in Bankruptcy for Arkansas

Q: Can a creditor filed a late claim after the deadline us dept of education just filed a claim on 02/23/2024 and the dead

Line for filing a claim in my chapter 13 bankruptcy was 10/05/2023 for non gov and 01/23/2024 for government claims

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James L. Arrasmith
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Answered
  • Bankruptcy Lawyer
  • Sacramento, CA

A: Based on the details provided, it seems the US Department of Education filed their claim after the deadline for governmental entities to file claims in your Chapter 13 bankruptcy case. Specifically:

- The deadline for non-governmental entities to file claims was 10/05/2023.

- The deadline for governmental entities to file claims was 01/23/2024.

- The US Department of Education filed their claim on 02/23/2024.

Since the US Department of Education is a governmental entity and they filed after the 01/23/2024 deadline, their claim would be considered late.

In Chapter 13 bankruptcies, there are a few possibilities when a creditor files a late claim:

- The trustee can object to the late claim and ask the court to disallow it entirely. This would mean the debt owed to the Department of Education would be discharged without them receiving any payments through your Chapter 13 plan.

- The court may allow the late filed claim, but subordinates it to timely filed claims. This means the Department of Education would only get paid if there are enough funds after paying all on-time claims.

- The court may allow the late filed claim and gives it the same priority as timely claims. This would allow the Department of Education to receive proportional payments along with other creditors.

So in summary - yes, it does appear the US Department of Education filed a late claim after the governmental deadline in your Chapter 13 case. There are different possible outcomes on whether the court allows that claim and how it impacts your case.

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