HOW DO MY CREDITORS RECEIVE THE MONEY I OWE THEM?
               
	     There are different types of claims that can be filed.
	     
Secured claims are claims on which the creditor has a valid lien on property.  In a Chapter 13, secured claims, other than mortgages, are allowed for the value of the property on which the person has a lien.  Secured creditors are required to file a documentation of the valid perfected lien with their proof of claim to be paid.

Priority claims are filed by governmental agency such as IRS, Indiana Department of Revenue, for Child Support and property taxes.

Unsecured claims are filed for anything that does not have a lien against it.  An example of this would be loans made to you by a family member of friend, cell phone bills and personal loans.

Normally, in order for a creditor to receive money from the bankruptcy, they must file a Proof of Claim with the bankruptcy court within 90 days of your first scheduled 341 hearing. (Governmental authorities have 180 days from when you file bankruptcy to file a claim.)

The type of claim then helps determine when the CREDITOR will be paid.

Creditors ARE paid in the order listed in your confirmed plan.  Usually, the Trustee’s office would catch up your mortgage payments due since you filed bankruptcy first, and pay your attorney’s fees.  After your mortgage is caught up, our office will pay the value oF your car, your mortgage arrearage from before you filed bankruptcy and other secured creditors.  After your secured creditors are paid in full, our office will begin paying the priority claims- past due child support, taxes, etc.  After the secured and priority claims are paid in full, your unsecured creditors will receive their payments.  Before Trustee Aikman pays your unsecured creditors, a claim recommendation will be mailed to you for your review.  You have 30 days from the date of the claim recommendation to file any written obections.  If there are no objections, Trustee will begin disbursements.

If you have a question about the classes of claims, or how your plan proposes to be certain claims, please contact your attorney.