INSTRUCTIONS : CREDITORS HOLDING 20 LARGEST UNSECURED CLAIMS (Form B-4)
• A Chapter 13 Bankruptcy is a debt repayment plan; in order to filing for this type of bankruptcy the individual must be employed so they can make regular payments to the Bankruptcy Court. The payments offered by the filer are then distributed among the individual’s various creditors. In most instances, an individual will be required to file this form of bankruptcy if they can pay at least 25% of their debts given their disposable income and savings. If the individual is approved for a chapter 13 filing, they will make payments for up to 5 years; the court will negotiate the filer to pay a portion of the total debts during this time.
What is the Form B-4 Creditors Holding 20 Largest Unsecured Claims?
• The Form B-4 Creditors Holding 20 Largest Unsecured Claims is the official legal document of a bankruptcy filing case that formally lists your 20 largest creditors to whom you owe the largest amount of unsecured debts. Unsecured debts refer to any debts you have assumed that are not backed by a tangible form of collateral. In most situations, unsecured claims that are listed on this schedule include forms of consumer debts, such as credit card debts or debts that arise from personal loans.
What does the Form B-4 Creditors Holding 20 Largest Unsecured Claims consist of?
• The Form B-4 is simple in nature; it contains only 1 page, which is repeated in uniformity. As stated earlier, the form is meant to signify your most severe unsecured debts. As a result, the form only requires you to list the name of your creditor, along with the complete mailing address, the name and contact information of the particular employee or agent or department of creditor who handles your account and the nature of your particular claim. The nature simply refers to what kind of debt it is—is it a trade debt, a bank loan, a government loan, credit card debt? Following the input of this information you will be required to list the amount of the debt and whether the claim is contingent, unliquidated, or disputed.