Secured Creditor Question
Question Details: 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?
Bankruptcy Law Answers
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.
Related Bankruptcy Questions
Didn't find your answer? Ask.
Top Ranking Attorneys
- Hong Shen203 Answers|Points 10150Gold Contributor
- Joseph Gasparrini43 Answers|Points 2050Bronze Contributor
- Kelly Broadbent81 Answers|Points 4000Silver Contributor
- Russ Pietryga66 Answers|Points 3250Bronze Contributor
- Glenn M. Lyon, Esq.23 Answers|Points 1130Bronze Contributor
- Shawn Jackson17 Answers|Points 850Bronze Contributor
- Hong Shen203 Answers|Points 10150Gold Contributor
- Kelly Broadbent81 Answers|Points 4000Silver Contributor
- Russ Pietryga66 Answers|Points 3250Bronze Contributor
- Sharon Siegel62 Answers|Points 3090Bronze Contributor
- Michael D. Siegel56 Answers|Points 2750Bronze Contributor
- Paula McGill50 Answers|Points 2500Bronze Contributor
Are you a lawyer?Want to be featured here? Sign up for a free profile and get started today! Click Here
More Questions Like This...
 |