Pennsylvania Sample Letter for Pro Rata Share of Bankruptcy Estate
Description
How to fill out Sample Letter For Pro Rata Share Of Bankruptcy Estate?
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FAQ
The entity in bankruptcy is called the ?debtor.? Parties that are owed money by the debtor are called ?creditors.? Creditors may be either secured creditors, meaning that they hold collateral for the debts owed them, or unsecured creditors, who do not have any collateral or security for their claims.
Each type of creditor has a say in the insolvency process. The appointed Insolvency Practitioner could possibly have a creditors' committee where certain representatives will act as a sounding board and give him/her direction on the case relevant matters and also agree the costs for the work that's done.
There are three types of bankruptcy creditors: secured, unsecured and priority.
Subtract the total amount of money going out each week or month from your total income. Whatever you have left (if anything) is known as your 'available income'. If you have any available income, you can work out how much to pay each non- priority creditor. This is known as a 'pro-rata' offer of payment.
The difference between a debtor and a creditor is that the creditor is the one who lends money in a credit relationship, and the debtor is the one who borrows it.
"Creditor" is an entity that has a claim against the debtor that arose at the time of or before the order for relief concerning the debtor.
