Claims Policy Update ~ Treatment of Claims Scheduled in Plan with No Proof of Claim Filed

Claim proposed in Plan and No Proof of Claim is Filed
(Revised 2/8/13)

If Debtor’s Plan provides for payment of a claim, including curing of a mortgage  arrearage, payment of secured municipal tax lien, priority claim, or separately classified general unsecured claim, and the Creditor does not file a Proof of Claim, the claim will be set up per the Plan and placed on hold for 30 days. Debtor’s Counsel (or Debtor if Pro Se) will receive a letter advising that action must be taken within 30 days of the date of the letter or the hold will be removed and creditor paid pursuant to the plan.

EXCEPTION: No hold will be removed for payment to: NJ Div Tax, NJ Dept. of Labor, or IRS. If no action is taken, a Notice of Reserve will be filed and the Trustee may take action to fix the claim, modify the plan to pay other creditors, or deposit the funds with the Clerk of the Court.