Aftera Chapter 13 bankruptcy is discharged, does any creditor still need to be paid?
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Aftera Chapter 13 bankruptcy is discharged, does any creditor still need to be paid?
I am asking this because I got into a dispute with the attorney who represented me. I paid $1,500 and they were listed as a creditor, now he is saying that I still owe him $1,500. Do I have to pay this? The beginning amount was $978 and then because they mishandled my case and had to do some other paperwork, they charged me an additional $522. They were trying to stop me from being discharged so they put this down as supplemental fees and they are using that as something separate and in fact it was all the same thing. I paid other money too. I got my discharge.
Asked on March 4, 2011 under Bankruptcy Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
A chapter 13 bankruptcy is known as a reorganization of debt rather than a total elimination of certain debt, like a chapter 7 bankruptcy. You say that the attorney listed himself as a creditor. This was to insure protection of the debt owned by the bankruptcy court and to make sure that he was paid. This is not unusual. And bankruptcy petitions can be amended to keep the status of the debt owed "current" and know to the trustee. But your claim here is that they are charging you for mishandling the proceeding and that the fees were not justified. What was the amount that they listed as owed if you paid $1500? This needs to be determined. Also, what did it say in the repayment plan? More facts and a time line are needed here. If you think that they did something that was wrong explore it. Good luck.
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