How to Add an Unliquidated Dispute to a Chapter 13 Bankruptcy Filing

A Chapter 13 bankruptcy filing is referred to as an "individual debt adjustment" by the federal courts because it restructures debt into a payment plan, rather than eliminating most or all debt under a Chapter 7 bankruptcy filing. As with any bankruptcy proceeding, a debtor is allowed to make adjustments, known as amendments, to a bankruptcy petition. An example would be adding additional creditors. An "unliquidated" dispute is a debt owed that does not yet have a specific dollar amount attached. For example, this could be an accident where damages have yet to be determined.

Instructions

1. Contact a local bankruptcy clerk. Local courts have rules about how to process bankruptcy documents. You might need specific forms not required by other courts. Failure to properly submit documents could result in dismissal of the bankruptcy petition.

2. Verify the unliquidated dispute. If enough time has passed, a valuation may be attached to the claim and should be noted on your bankruptcy petition.

3. Amend Schedule F. Schedule F of the bankruptcy petition reflects the names and amounts of unsecured creditors. Add the name of your unliquidated creditor and note that the debt remains unliquidated. You might have to attach a cover sheet outlining the nature of your amendment depending on rules of the local court.

4. Pay the fee. The U.S. Bankruptcy Court charges a $26 fee to amend Schedule F, although a bankruptcy judge may waive this fee subject to his or her discretion.

5. Mail copies of your amendment. You must copy your bankruptcy trustee on all amendments made to your bankruptcy filing, along with all creditors listed in the amendment, according to the U.S. Bankruptcy Court. You also must file a proof of service with the court showing that you have notified all creditors.

6. Track your case on Pacer. Pacer is a court website that provides public access to court electronic records. Through Pacer, you can verify that your bankruptcy petition has been amended as requested.

Tips & Warnings

• Pacer charges 8 cents for every page viewed but will not charge you if the balance is less than $10 in a single quarter.

References

• United States Courts: Chapter 13 Individual Debt Adjustment
• Stanford Law Review: Procedures for Estimating Contingent or Unliquidated Claims in Bankruptcy
• BankruptcyHome.com: Unliquidated Claim
• United States Bankruptcy Court Central District of California: Amendment Form
• United States Courts: Bankruptcy Court Miscellaneous Fee Schedule
• United States Courts: Local Court Rules

Resources

• PACER