Business Bankruptcy Am I understanding this Chapter 13 notice correctly?

[CousinIt]

The Trustee sent me a notice "Trustee's Motion to Reclassify Claim as Unsecured". I thought that I was already an unsecured creditor (it was an uncollected court judgement from a small claims suit) so now I'm confused. The letter referenced code sections 502 and 506 and rules 3001 and 3007. It says the Trustee "hereby moves that an Order be entered by the Court reclassifying as unsecured for distribution purposes the proof of claim filed by.." (me). That was clear but then under my information it says "for the reason that there was no evidence of proper perfection of the alleged security interest attached to the filed proof of claim". Does that just mean I needed to send something extra to make it "secure"? I didn't have anything else to send in other than the judgement. I just want to make sure I'm not going to get kicked out because I filed something wrong. Thank you.

 

[army judge]

Once you obtain a judgment, it must usually be filed with the court clerk. If the judgment is to remain valid. You must re-file every so many years. The times vary by state. Google (your state, perfecting small claim judgment) for details in your state. Generally, if you have not collected a small claims judgment within a month or so of receiving it, you can use it for lining the bottom of a birdcage. Doing something now, might be more trouble than it's worth.

 

[despritfreya]

I thought that I was already an unsecured creditor. . .

There is nothing for you to do since you agree that you are an unsecured creditor.

Hopefully you kept a copy of what you filed. My guess is that you filled in the part for secured creditors or somehow marked a box for secured creditors (instead of unsecured). All the Trustee is doing is making sure you are paid as an unsecured creditor. If you agree that you are not secured then don't worry about it - you cannot file anything now that will make you "secured" and a simple judgment is not evidence of security.

Des.