Learn Ask A Question Get Help
Home > Law Advice > FreeAdvice Answers > California Bankruptcy > FreeAdvice Question and Answers
in   from 


    

Question: Bankruptcy - California

Asked on 10/26/2009
Secured Creditor Question
I am a secured creditor (secured by inventory) in a chapter 7 bankruptcy proceeding. I am not told that the inventory was sold which happens to conveniently fall under the limits of personal exemption. A significant amount of Cash money has been recovered by the trustee who now says that I should file amended claim to changed from secured to unsecured because only unsecured claims get paid by the estate. do you think I should change to unsecured? does this mean I don't have a priority in the distribution that the distribution will be split evenly among all the unsecured creditors?

 Notify me of updates.   Answer This Question!      Question Offensive or Inappropriate?

This question received 51 views.    
|More

Answers (1):

AttorneyPages has verified that this person is an attorney.

If the collateral on which your debt was secured was properly sold and no longer in the possession of the debtor, and there is no other colleteral on which you are presently secured, then you are unsecured.  The only "priority" that secured creditors have is that they can take and sell the collateral on which they are secured.  Otherwise, they are no different than general unsecured creditors.



  • Answered on 11/10/2009
  • Rating:
  •  Rate this answer






AttorneyPages.com
HACKER SAFE certified sites prevent over 99.9% of hacker crime. State Law Center  |  Legal Resource Directory  |  Legal Articles  |  Insurance Advice and Quotes  |  FreeAdvice Answers  |  Community Forums
Media  |  Privacy Policy  |  About Us  |  Contact Us

FreeAdvice® has been providing millions of consumers with outstanding legal and insurance information and general advice, free, since 1995. While not a substitute for personal advice from a licensed professional, FreeAdvice is available AS IS, subject to our disclaimer and conditions of use.
FreeAdvice®, AttorneyPages®, ExpertPages® are registered trademarks and units of Advice Company.
All Rights Reserved © 1995-2010