In July, 2009, I contacted Prosper about one loan in ch 11 and one in ch 13 and asked for an update. Here was the response then:
Dear [xraider],
Unfortunately, we do not have information as to when Prosper may begin receiving payments for loan# 7107. Prosper must receive notice from the bankruptcy court that the debt has been discharged before we are able to discharge the loan in our system.
Thank you for using Prosper.
For future reference, your Prosper support case number is 00363615.
Sincerely,
Prosper Customer Support
--------------- Original Message ---------------
From: [xraider]
Date: Wednesday, July 8, 2009, 11:47 AM
Dear [xraider],
Regarding loan# 7107, a payment plan has been reached which calls for unsecured creditors to receive 100% over 60 months. Loan# 16494 was converted from a Chapter 11 bankruptcy to a Chapter 7 on 6/5/09.
Please let us know if you have any further questions.
For future reference, your Prosper support case number is 00363589.
Sincerely,
Prosper Customer Support
A few weeks ago, I contacted Prosper again about Loan 7107 and another one which has been rotting in ch 13 for more than two years. Following is the substantive response I received yesterday:
After my research and meetings I can supply you with the following information. Regarding loan 14855, unsecured creditors were to receive a pro rata share of 0%. There is no further information available on this loan.
Loan 7107 was very interesting and was where the majority of my research time was spent. Based on my review, allowed unsecured claims were to be paid not less than 100% over the 60 month plan. Obviously this was a surprise as there have been no payments posted to the loan since since the plans confirmation. What I found was that in 2008 Prosper missed the Proof of Claim date by 2 days. Due to the late filing our claim was objected to by the Trustee and that objection was subsequently sustained by the courts. The order sustaining the trustee's objection disallowed Prosper's claim in it's entirety.
The claim amount filed by Prosper was in the amount of $15506.20. It is my opinion that Prosper should make the Lenders on this loan whole because we missed the filing date. I have requested and received approval to do just that. While I haven't received confirmation of the date it will happen I can tell you that the plan is to post a payment in the amount of the back due 31 months of payments that would have been made on the Chapter 13 plan. Then beginning in February we will apply a monthly payment for the remaining 29 months of payments that would have been made on the plan.
Unfortunately I can't speak directly to why this particular bankruptcy was filed late as it was before my time with Prosper. I can tell you that it is our intent to ensure that each of these situations are managed appropriately and I am taking all necessary steps to ensure consistency and accuracy in bankruptcy filings. If you have any additional questions or please feel free to reply to this Email or contact me by phone
So, kudos to Prosper for responding and for doing the right thing, although this information should have been caught in response to my first inquiry more than a year ago. But, this does show a new openness and a new willingness to address problems and concerns.
I urge everyone to check their bks and if you have ch 11 or 13s that haven't paid in a year or more, you may want to follow up with Prosper.
FWIW, this will about double my gain on Prosper, from about $37 to about $71. Go me.