What is a Notice of Intent to Pay Claims (NIPC)?

After the claims bar period expires, a Notice of Intent to Pay Claims (NIPC) will be sent by the Trustee to you and your lawyer. The NIPC will be based on the claims register from the Court and any conformed proofs of claim received by the Trustee. The NIPC will list all creditors who have filed claims and the amount of each claim. You should review the NIPC promptly and carefully. The Trustee is required to pay all filed claims. All claims listed on the NIPC, including duplicate claims, late-filed claims or claims which were discharged in a prior Chapter 7 case will be paid by the Trustee unless you successfully object to the claim or the creditor amends or withdraws the claim.

You are in the best position to know whether the claims listed on the NIPC are legitimately your debts. Therefore, it is your responsibility to ensure that only valid claims are paid.

If you feel you do not owe certain debts listed on the NIPC, call your attorney. Do not call the Trustee. Unless there is a Court order, the Trustee has no authority to withhold payments to a creditor who has filed a proof of claim. If you do not schedule a hearing before your judge and successfully object to the claim, or if the creditor does not amend or withdraw the claim, the Trustee will pay the claim as filed. Letters or telephone calls to the Trustee do not constitute objections to claims, and will not stop the NIPC period from running. The form and content of objections to claims are governed by Local Bankruptcy Rules and other applicable law.