Attorney Garry Masterson Featured in American Bankruptcy Institute's ABI Journal

“Whether you are a judge, chapter 13 trustee, counsel, debtor, creditor or creditors’ counsel, we can all agree on the importance of a timely filed secured motor vehicle claim. While there are instances where a creditor or other interested party can seek additional time to file a late proof of claim, and those are absolutely essential to explore and exhaust, the endpoint that many discussions arrive at in the absence of such a remedy is this: What are the debtor and creditor left to do regarding the vehicle when a late claim is not allowed? How about when a late claim is not allowed and the vehicle was provided for in the previously confirmed chapter 13 plan?

Unfortunately, it is and has been the ongoing stance of many a court and chapter 13 trustee to tell the parties ‘tough luck, you can deal with the problem after discharge, potentially five years in the future.’ While nobody is imputing harmful intent to any court or chapter 13 trustee that possesses this no-exceptions stance, all of us in the bankruptcy world really need to have a frank and blunt discussion regarding whether this is really the best approach. What happens in such situations after discharge, and whom is such a practice really serving best? One can confidently say neither the subject debtor nor the creditor are being put in an appropriate position when this predominant out-come is realized.”