Page 193 - Judgment Enforce Course

Judgment Enforcement – The Step-by-Step Course

Filing a Proof of Claim

If your debtor filed “Chapter 7 with assets,” then you want to get in line to receive a
little money back after the Trustee sells the assets. You’ll have to file a Proof of Claim.
To get the form, go to Google and put in “’proof of claim’ & “bankruptcy.” There are
also instructions for filling it out.
If you go to the 341 Creditor’s Meeting, you can file the Proof of Claim at that time.
Otherwise mail it to the court. Make sure it will arrive before the deadline on the notice
you received.

What then?

Then you wait to see if there are really any assets. But don’t hold your breath. Even if
you get something in a Chapter 7 with assets (and I never have) it will only be a few cents
on the dollar. So don’t buy that new car yet.

What if I have liens on the JD’s Real Property?

Real Property means land and the buildings on the land. If you
knew that your debtor had real property, and if you filed a lien, then
you should be listed as a secured creditor. Your lien will survive if
there is equity in the property beyond the homestead exemption.

Homestead exemptions vary from state to state. In New York it is
only $86,000 in most counties. In California it is $75,000 for a single
person, $100,000 for a couple, and $175,000 if the debtor is 65 or older. In Pennsylvania
there is no homestead exemption at all. You should become very familiar with the
homestead laws in your state. That knowledge will come in handy.
If there is enough equity in the property, then your lien will survive. If there is not
enough equity, the lien will be wiped out if the bankruptcy attorney requests it and the
court agrees.
If you want to know what the homestead exemption is in your state, Google

“Homestead exemption + your state + NOLO.

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