Creditor Moves to Extend Deadline to File Complaint and CCs Many Other Creditors

[stymied]

We filed Ch 7 in April. Pro Se (couldn't afford a lawyer and still can't). I tried hard to get it right, did lots of research, was forthright and honest in the petition. Creditor's meeting went well, Trustee kinda went out of his way to help us, noted several things I needed to amend b/c quoting Federal bk laws when my state uses our own, but he had no problem with the filing as far as financials.

Today, about four months after filing the petition, we were served a motion to extend the deadline to file an objection. As far as I can tell this originated with the attorney for a local bank, we defaulted on three loans from them totaling about $10K. This bank copied many other creditors on the motion.

The bank has made no offer for settlement and I don't know what it's about and it is scaring the bejeesus out of us.

One of the loans we had with this bank was an auto loan (since reposessed), a signature loan for about $8K, and an overdraft privilege loan for about $1700. We took out the OP loan within 90 days of filing the bankruptcy. We thought at the time we signed the papers for the ODP loan we would probably be filing for bankruptcy and I knew we shouldn't be charging things or taking out loans before we did it but we had already run our overdrafts to the limit many months before, the bank had cut us off long ago, and we knew the overdrafts would be dischargeable either way.

I plainly noted the origination date of the ODP loan in the bankruptcy petition and the Trustee never said anything about it.

I suspect (do not know) the ODP loan is what is behind this, but I don't know for sure.

What can we expect? Please help.

KH

[ValleYum]

When was your 341 meeting held?

[stymied]

June 15th

[malf1204]

He may very well get an extension but he will have to show why he will be unable to file an AP by August 15. Were they listed in the original matrix? That would be my response to the motion. Creditor was notified with original BK filing. Creditor has the option to file AP in the next 6 weeks. Delaying objections and discharge will unfairly harm debtor and is contrary to the "fresh start" concept of Chapter 7 Bankruptcy. On the bright side it is useless for them to file an AP for auto loan or sign loan the only one that makes sense is ODP but at $1700 it hardly seems worth the time and effort.

[LadyInTheRed]

Did they state their grounds for requesting an extension? If they received notice of your BK on time, I would object to their motion. Rule 4004(b)(1) requires there be cause for an extension.

This article may help in drafting an objection. But, the cases cited are not from your circuit (4th I believe). It may be helpful to pull up one of those cases on PACER to find the objection the debtor filed to the motion for extension. http://www.jchfirm.com/2012/04/how-t...tcy-discharge/

Are you sure it is the 90 day presumption period that applies to the ODP loan and not the 70 day period? See 11 USC § 523(a)(2)(C)(i): http://www.law.cornell.edu/uscode/text/11/523. Not that that would prevent the creditor from filing an AP. But, it would shift the burden of proof which is important.

Keep in mind that even if they get an extension, they may not decide to file the AP.

I plainly noted the origination date of the ODP loan in the bankruptcy petition and the Trustee never said anything about it.

The trustee doesn't care about the dischargeability of specific debts. That's not his/her job. It's up to a creditor to file an AP.

[LadyInTheRed]

Today, about four months after filing the petition, we were served a motion to extend the deadline to file an objection.

I am assuming it is a motion to extend the deadline to file an objection to discharge, and not to exemptions. Is that correct?