bankruptcy unclaimed funds
Unclaimed funds from bankruptcy?
Does anyone know how the Bankruptcy court determines which creditors will get paid from any available funds? I filed bankruptcy and got my discharge last week. But I had to forfeit my “stimulus” check ($1,800), my federal refund ($600) plus almost $500 for “earned money not yet paid’ at the time I filed. So, roughly $2,900. Do they just evenly distribute it amongst all of my creditors, or do creditors have to make a claim. And if creditors don’t make a claim, does the unused portion come back to me?
You are worried about “your” $2800: If you had less debt than $2800 you would never have filed for bankruptcy, am I right? That money is gone to pay creditors and legal fees. Move on.
Creditors do have to file a claim. but don’t worry most of them will (a few may not); all of your forfeited assets will be converted to cash and paid out to those creditors who filed a claim. Most likely they will receive less than $100 for every $1,000 you owe them.
