In most cases, bankruptcy claims are straightforward; you owe money to a lender, such as a credit card company, and need to claim the amount due. However, in some instances, bankruptcy claims are more complicated. If you’re worried about running into an issue along your debt relief journey, use the following guide to learn about lesser-known claim types.
What Happens When the Claim Amount Isn’t Cut & Dry?
If the amount you owe to a lender isn’t clearly defined, you might have to file a different sort of bankruptcy claim. For example, a contingent claim is based on an event that hasn’t happened yet and might never happen. An unliquidated claim is established when you don’t know the exact amount of money you owe. Finally, a disputed claim means that you and the lender or creditor disagree on the debt amount.
What Are Some Cases Where This Could Happen?
Say you put yourself down as a co-signer on a secured loan, such as for your relative’s mortgage. If the person you signed with defaults on the loan by failing to pay it back, you would take over the financial responsibility. Since you may not owe this debt yet or may never owe this debt, you will have to file a contingent claim.
If you were at-fault in a car accident and the other driver’s insurance provider sues you for damages, you might not know how much you owe right away. This is because the injured individual could still be in the hospital, undergoing treatment. Because you’re in the middle of a legal battle, the money you will eventually owe your lawyer is also unknown. This is an example of an unliquidated claim.
If you have a disputed claim, you probably believe you owe less than the amount the lender or creditor is asking for. Whether you received a letter from the IRS claiming you didn’t pay enough taxes or were charged another month’s rent by a landlord, you would put forth this bankruptcy claim.
Luckily, a bankruptcy attorney can help you decipher which type of claim you have, as well as navigate the debt-relief process with an unknown debt amount. At The Gil Law Firm, attorney Rafael Gil III can gather evidence to help prove your disputed claim or come to a fair estimate for your unliquidated claim. This Dothan, AL, attorney has experience with everything from Social Security disability to debt consolidation and personal injury cases. For more information on their practice areas, visit their website. You can also call (334) 673-0100 to schedule a consultation.