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If I timely file a Proof of Claim, will I receive payment?

Type: 
Creditor
Answer: 

The answer to this question depends on the chapter under which the debtor files for bankruptcy.  In a Chapter 11 or a Chapter 13, your right to receive payment will be set forth in the debtor’s plan of reorganization.  In a Chapter 7 case, you may not receive payment unless the debtor has non-exempt assets that can be liquidated by the Chapter 7 trustee.  For unsecured and undersecured creditors, the amount of payment will vary depending upon the value of the assets liquidated and the amount of claims filed against the debtor.  Secured creditors generally retain their liens during the bankruptcy and can reduce their claim by liquidating their collateral after the automatic stay is lifted.  Requests for information regarding when a claim will be paid should be directed to the trustee assigned to the case whose name and telephone number can be found on the Notice of Bankruptcy Case.