Discharge Violations

How to protect yourself from theft in a Chapter 13 with ndc.org

Every active Chapter 13 bankruptcy debtor should open an account with ndc.org.  The cost is free but the information you see could be worth a lot of money to you and save you from theft.

Having an account with ndc.org will allow you to see every single proof of claim that has been filed in your bankruptcy case and it will also allow you to verify that your Chapter 13 payments are being received by the trustee. 

Years ago, I had a client whose employer took money of her paycheck but never sent it the trustee.  We caught the error and had to sue the employer to get the money paid.  Having an account with ndc.org allows you to catch stuff like this.   

A proof of claim is a form signed under oath with supporting documentation that a creditor must file in a bankruptcy case in order to get paid.  The proof of claim will tell the trustee the type of claim and the amount owed.  If a creditor fails to file before the deadline in your case, they won’t get paid anything. 

For example, let’s say you had a car repossessed a few years ago and owed the car creditor $10,000.00.  If they fail to file the proof of claim on time, you will not have to pay that $10,000.00.   

Let’s change up the facts a little bit.  Let’s say you owe the IRS $10,000 of tax debt that we cannot eliminate in bankruptcy.  If they don’t file a claim, we may want to file one on their behalf to make sure they get paid in your case.   

While it is rare, sometimes a creditor will accidentally file a claim in the wrong place.  In theory, if no one ever notices, a wrong claim could get paid and cost you a lot of money.  At my bankruptcy firm, we review every single claim filed in our client’s case.  At the same time, we also encourage all of my clients to open an account with ndc.org and double check as well. 

The fact that many bankruptcy claims get sold can create a lot of confusion for clients.  You may look online and see the name of claim holder that you have never heard of before.  If this happens, it is a good idea to call us so that we can pull the claim and make sure it is accurate. 

If an inaccurate claim is discovered, we will first contact the person that filed it and notify them of their error.  If the offending filer ignores us (which happens most of the time), we will then file an Objection to the Proof of Claim.  The debtor will need to attend the hearing with us to testify to the judge that the claim is bogus.   

Ndc.org states that you can open an account online in less than 5 minutes.  All you will need to set up your account is: 

  1. Your full legal name. 
  1. Your bankruptcy case number. 
  1. The last 4 digits of your social security number. 
  1. Your trustee’s name. 
  1. A list of your creditors in your bankruptcy case. 

Benefits of setting up a NDC account: 

  • Access your Chapter 13 bankruptcy information online. 
  • Helpful answers to frequently asked questions. 
  • A quick glance at the page may save you a call to your lawyer or trustee office. 
  • Provides you the information you need to stay informed about your Chapter 13 bankruptcy case. 
  • Keep yourself on track during your payment plan. 
  • Ensure that you will have no surprises. 

In conclusion, if you are in a Chapter 13 right now, go get your account with ndc.org set up as soon as possible.

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