AP and the chance of them showing ? Has anyone had any creditors show up ?

[BKHELP138]

Thanks for your input. Just curious to see if they just file or really show up.

[keptdigging]

By "show up" do you mean at the 341 "meeting of creditors?"

If that's what you meant... Creditors who know what they're doing don't come to the 341 meeting. The meeting offers very little opportunity to probe the debtor's finances, whereas they have other ways they can question you in detail.

The creditors who show up are usually individuals/small businesses owed money that don't have a lot of knowledge about the bk process.

Banks start APs with letters, requests for examination, and, if they're serious, by actually filing a suit. Legally the 341 meeting just starts the clock on their time to file an objection. It is not where they express such an objection.

I owed plenty of money to plenty of banks and, as expected, no one showed. That doesn't mean I won't see an AP before my 60 days are up.

[BKHELP138]

I mean in general. I hear a lot about creditors filing suits etc but once you file Bk most if not any seem to follow thru. I was just curious to see if any did follow thru. I guess it is hard to object to someone who has nothing left or just not worth the time and money.

[chrisdfw]

If they file a suit before you file bankruptcy, the suit is stopped by the bankruptcy, so they can't follow through. Filing a lawsuit before bankruptcy is just a way to collect money, if someone owed you money you'd do the same.

Filing an AP in bankruptcy is a much different thing, this is something you'd only do if there was fraud that you could prove, because if they file and lsoe they have to pay the attorneys fees for the debtor. It is discouraged by the way the law makes them pay attorneys fees, it is difficult to collect from a bankrupt debtor anyway, even if a creditor suspects fraud, it doesn't mean they can prove it, and it doesn't mean they can collect if they win.