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Why would a creditor not send in a proof of claim, or bother to vote at all?

In your experience, why would a creditor not send in a proof of claim, or bother to vote at all. Do major banks do this?

What if a trustee`s office just misplaced paperwork and then tells me `x` bank did not send in anything?

Also, will the no-voting creditor offer a counter-proposal? Because, how would I know if I offered a counter-proposal, that it would be enough to satisfy them?

Posted from: Ontario

One Response to “Why would a creditor not send in a proof of claim, or bother to vote at all?”

A licensed trustee said...

The creditors have there own reasons for what they do, but in most cases the major crditors (banks, finance companies, commercial lenders) will send in a proof of claim. They don’t all do it quickly – in fact, a couple are quite slow (such that they often miss the voting deadlines for proposals).

I suppose it is possible that a trustee might misplace paperwork, but I seriously doubt it would happen with any kind of frequency. Errors happen, but it’s not something you can plan for or should worry about.

And yes, in most cases if a creitor votes against the proposal you have put forward they will offer counter terms. If they do not (or if they tell your trustee they are not interested in counter terms) it is usually because your conduct prior to offering the proposal was questionable. An example of this – you took a large cash advance in the days or weeks before you filed. If you do something like this you should not expect the creditor to accept any proposal that you may offer.