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Chapter 13 Bankruptcy is Bad For Your Finances Money you had paid in the payment plan suddenly is applied to interest on debts that had been held in abeyance, which means you will owe more than when you started.
Basis for perfection: Attach redacted copies of documents, if any, that show evidence of perfection of a security interest (for example, a mortgage, lien, certificate of title, financing statement, or other document that shows the lien has been filed or recorded.)
The addendum should set forth the pertinent background facts of the relationship between the debtor(s) and the creditor, and the manner in which the creditor believes that the claim arose.
Attach redacted copies of any documents that support the claim, such as promissory notes, purchase orders, invoices, itemized statements of running accounts, contracts, judgments, mortgages, and security agreements.
Related Content. Proving is the process by which a creditor seeks to establish its claim against the insolvent estate. A proof of debt is the document on which a creditor submits details of its claim.
If a secured creditor fails to file proof of claim, then you will not make any payments toward what you owe on your house or car during your repayment plan. At the end of the bankruptcy process, to keep the collateral, you will still owe the full amount of these secured debts. Plus, you may owe interest and other fees.