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According to the bankruptcy Code, a contingent claim is one that the
debtor disputes in entirety. Both the amount and liability are denied,
and no provision is made for a Chapter 13 payment through the plan. An
unliquidated liability however is one that the debtor readily accepts as
valid, yet the amount owed remains uncertain. A Chapter 13 plan must
make provisions for payment of unliquidated liabilities, yet the amount
of payment may remain in flux for an indefinite period of time. Any
creditor who receives notice of a Chapter 13 cases, claiming contingent
status for a claim, must appear in court and defend their claim, or the
claim will be lost without further payment.
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