Objection by Creditor

[Crozier]

My 341 is next week and I just received a letter from the court indicating that my credit union is objecting to my filing and proposed payment. They are claiming that I have misreprented my income and therefore my ability to pay. Total debt to these guys is $72K unsecured & $14K secured in a vehicle. I plan on surrendering the car. My question is this: Is the objection a common tactic? In other words more common than not. Has anyone experienced any cross collateralization issues from a lender?

After paying 10 years worth of interest to these guys, with no help when the economy & my employment tanked; in the form of a modification...they are starting to annoy me.

[rrockinggramma]

objections from creditors are common. There main goal is to get you pay them more money. Credit Unions are notorious for being nasty in BK's. Is the 72K you owe them unsecured? If so, and you are returning your car to them, they will not have any "hold" on you at all and that is what is upsetting them. That means all their debt is unsecured and will only get a percentage. They will try to get you to pay more. Just be prepared to show them your income as it currently is. You can't get blood from a turnip.

[Flamingo]

rrrockinggramma is correct. Make sure your have documented proof of your income and your attorney will handle the rest.

Your last paragraph bothers me a bit as I used to have the same thoughts as to interest paid - "After paying 10 years worth of interest to these guys, with no help when the economy & my employment tanked; in the form of a modification...they are starting to annoy me." Remember, you signed the paperwork to pay that interest since they lent you their money. They only want their money back and for you to comply with the contract you signed for the credit. I would look back on the interest repaid over the years to certain creditors realizing we paid back way more than what we owed and finally realized it was our fault, not theirs, and it's just business. Take the personal out of it and you will feel much better.

[Michigan1951]

I never saw it that way, but it makes a lot of sense now. I am just going to never give the cc cards another crack at my finances after this is all said and done.

[rrockinggramma]

and hopefully you no longer bank there because they will refuse to service any of your accounts.

[Nanzee]

I am wondering if my credit union is also going to object. We have a car loan with them (balance is 3600.00) and a line of credit (balance is 6300.00). I did get my money out of there, as I was warned by many people here to do so, and our lawyer advised us to do so as well. Though he did not tell me this until I asked him after learning about this possibility here, which is another thing that I am not very happy with him about. So, the worst the credit union can do is ask for more money? Sorry to ask more questions on your thread.

[Crozier]

Thanks for all the info. You are right Flamingo, it is totally my own fault, I was just venting and frustrated. After a Jack and Ginger Ale it was all better. I only left a little money in there for just in case scenarios (like $100 bucks). So far they have not frozen it. You are also correct in saying they are nasty. Referring to me as "Mister," versus my first name like they have for the last ten years.

One funny thing, the lawyers they use actually prepared a B22C for me and submitted it with the objection as an exhibit. Pretty interesting tactic.

Thanks again...good luck to all of you.

[justbroke]

Credit Unions and motor vehicle lenders... are the most irritating creditors!