Objection To Discharge By Creditor

[colemcl]

I was sued for the balance of a car that was reposessed. I made arrangements to pay it off monthly, but defaulted on the payments. I filed ch. 7 bk and listed this creditor on there. They filed a motion to object the discharge. What do I do? Can I call the attorney that filed this to see if I can make payment arrangements, or is that not an available option? How does paying off a creditor affect the rest of the bankruptcy? I am scared because this is my first time filing bk, I don't have an attorney, don't have money to hire an attorney, and I'm really just clueless as to what I am suppose to do next. Any and all help would be greatly appreciated.

[BigJohn]

I think this creditor knows this creditor knows you don't have a lawyer. This debt is dischargeable in bankruptcy but what they are trying to do is trying to trick you in paying the debt. Ask the court's clerk what you got to do.

[justbroke]

I was sued for the balance of a car that was reposessed. I made arrangements to pay it off monthly, but defaulted on the payments. I filed ch. 7 bk and listed this creditor on there. They filed a motion to object the discharge. What do I do?

I assume that you filed pro se. Without details of exactly what's in the motion, I can't tell you what their issue is.

Can I call the attorney that filed this to see if I can make payment arrangements, or is that not an available option?

You do not need to make any payment arrangements. Assume that this will be discharged in the Bankruptcy.

How does paying off a creditor affect the rest of the bankruptcy? I am scared because this is my first time filing bk, I don't have an attorney, don't have money to hire an attorney, and I'm really just clueless as to what I am suppose to do next. Any and all help would be greatly appreciated.

So many questions I have. Is this an actual complaint (Adversary Proceeding)? Or, is this just a contest matter by Motion? There's a difference.

If this is a complaint to determine dischargeability of that particular debt, then this is what's known as an Adversary Proceeding (AP). It would mean that the creditor is only questioning this particular debt, and none of your other debts. It would not affect the discharge of any other debt in your case. I just don't see how the creditor believes that the debt should not be discharged. There has to be something in that Motion which lists the basis for which the creditor believes the debt should not be dischargeable.

Without knowing that... what I wrote above, is all I can tell you. Unfortunately, the Clerk will not assist you with legal matters or legal questions. The Clerk will only assist your with procedural things like "how do I schedule a hearing" or "where is form X"... and similar things.

[colemcl]

Thanks for the rapid response. It's an order extending time to file a complaint objecting to discharge.(rule 4404(b)). It says that various discrepancies have been noted on the Debtor's schedules concerning assets, income, and expenses that they have been unable to resolve. It says they want to take a 2004 exam of me so that a proper decision can be made prior to filing a complaint. It says that through, has advised me that they may have a factual and legal basis for the filing and prosecution of a complaint objecting to discharge of debts. It also says that in order to allow them sufficient time to see if a resolution, without litigation, can be reached, ir is requested to extend the deadline for the filing of complaintsfor determination of nondischargeability of debts and discharge be extended for a period of 60 days. There's a deadline for opposion papers and request for a hearing which is 15days. Am I suppose to submit something or just leave it? I am so confused about this whole process.

[justbroke]

Thanks for the rapid response. It's an order extending time to file a complaint objecting to discharge.(rule 4404(b)). It says that various discrepancies have been noted on the Debtor's schedules concerning assets, income, and expenses that they have been unable to resolve. It says they want to take a 2004 exam of me so that a proper decision can be made prior to filing a complaint. It says that through, has advised me that they may have a factual and legal basis for the filing and prosecution of a complaint objecting to discharge of debts. It also says that in order to allow them sufficient time to see if a resolution, without litigation, can be reached, ir is requested to extend the deadline for the filing of complaintsfor determination of nondischargeability of debts and discharge be extended for a period of 60 days. There's a deadline for opposion papers and request for a hearing which is 15days.

Okay, that was a lot of information and I see what they are asking for now. They are motioning to extend the time to object.

Am I suppose to submit something or just leave it? I am so confused about this whole process.

Yes, you should be filing a response! Hopefully, your response is an Opposition to the Motion (or Objection), and you state your reasons why. You do need to file this within the timeline (deadline) for filing such.

Since you are a pro se filer, this can get complex. The NoLo Book, unfortunately, is not going to help you in this area. you will need to do research. A Rule 2004 Examination is something, while not common for every case, does occur when a creditor needs to take a deposition of the debtor to learn more.

I just don't see how an automobile company, who has already repossessed the vehicle, even considers filing a full-fledged Complaint!

I think they're fishing and probably saying that your agreement to make payments was fraudulent because you intended to file bankruptcy. I'm just making this all up, but they must have some basis in the Motion as well. Anyhow, I would think your Opposition to the Motion should include things like, they already have possession of the property which secures the loan. That any deficiency created is subject to discharge under every scenario. That their need to examine you under Rule 2004 is frivolous. Yada, yada, yada.

Or, I'm totally missing what really went on.

[colemcl]

Is it easier to just make arrangements to pay it off?

[justbroke]

Is it easier to just make arrangements to pay it off?

No! Why would you make arrangements when this is dischargeable? How much is it anyway (not that it matters)?

[music12]

colemci, do they say anything about what discrepancies they are talking about?

also, did they show up at your 341? if not, it's unfair, i think, for them to request a 2004 examination when it may have been possible to get all the info they want at the 341.

also, try the bk department of your local legal aid office; you might qualify for help or at least advice.

[colemcl]

It's a little under $25.000. I just didn't know if it was easier to try and settle considering I don't even know how to file an objection etc.

[music12]

you might consider hiring a bk lawyer just to scare this creditor away. would be worth it given the amount.

[MSbklawyer]

Do you have any idea what their basis is for objecting to the discharge? You said it pertained to a car that had been repossessed. Deficiencies are usually fairly cut and dried. The only time I've ever seen a creditor challenge the dischargeability of a deficiency occurred where the creditor alleged that the debtor had wilfully damaged the car, thereby reducing its resale value.

(When debtor found out his car was about to be repossessed, he put a road-kill skunk on the front seat of the car and parked it out in the sun. Two days later, he called the creditor and told them where to find the car.)

[aces67]

This is definitely dischargeable. If I were you I'd talk to a lawyer and see what it would cost to take care of this.

[colemcl]

Approx. how much do lawyers charge? My funds are tight that's why I had not tried to hire one yet.

[justbroke]

Approx. how much do lawyers charge? My funds are tight that's why I had not tried to hire one yet.

Some lawyer won't touch a case in which the debtor filed it themselves. However, you can expect to pay $1,500 to $4,000 for a Chapter 7 no-asset case in most Districts/States.

Now, if you're really indigent and have real money problems, try contacting your local Legal Aid. They may be able to provide some pro bono legal advice, or get you some reduced legal representation.

[music12]

Some lawyer won't touch a case in which the debtor filed it themselves. However, you can expect to pay $1,500 to $4,000 for a Chapter 7 no-asset case in most Districts/States.

Now, if you're really indigent and have real money problems, try contacting your local Legal Aid. They may be able to provide some pro bono legal advice, or get you some reduced legal representation.

that's probably true, but some lawyers will help you. you'll probably pay by the hour for them to scare this creditor away. it may take at most a couple of hours, possibly including a free consultation. given that you were willing to make arrangements to pay the creditor, you should be able to pay the lawyer for a couple of hours. it would be worth it.