What if a creditor objects . . .

[millerc507]

We are going to be filing Ch. 7 within the next two weeks. We are well under the median in NC. Thanks for all the information provided by the members on this board. We are really nervous about how the whole process works and the 341. Here is my question... what happens if a creditor objects? What is the process? We have one cc that was used last a little over 90 days ago. Most of them have not been used in 8-12 months. Any input is appreciated. We are so ready to get this going and the past six years of unfortunate circumstances behind us.

[hocus]

I wouldn't worry. If you're under the median the only realistic things they can object to are luxury purchases within 90 days and balance transfers within 70 days.

I had two charges that they could have objected to and didn't. My atty said that all that would have happened was that they would have sent a letter objecting and the trustee would have ruled. I would have conceded either charge so it wouldn't have been much of an issue.

But with your lack of recent usage, you don't have much to worry about.

[JollyGG]

The way the process usually works is first they send a letter to your lawyer saying that you made such and such charges and said charges would be non dischargable due to such and such reason. They request you pay them or reaffirm the debt.
You and your lawyer either respond to the letter or not.
You can try to reach an agreement to pay a portion (as low as 50%), you can ignore the letter, you can reafirm the original terms, or you could be unable to work anything out.
If you ignore the letter or can't work anything out the creditor may just give up or they may file an objection. In that case the objection is brought before the trustee and the trustee decides if you have to pay back the charges. Unfortunatelly you will have to pay your lawyer for defending you on that.

In our case we got letters from two creditors. However, these were both cards with activity in the prior 90 days. The first we ignored and they went away. The second our lawyer send a letter back to citing the areas of the bk code saying that charges for luxary good in the previous 90 days were non dischargable. He told them we had statements proving all purchases were for auto fuel and groceries and therefore were fully dischargable. They also went away. Of course in our case the amounts for each were under 2,000. So were were 1. willing to pay them back if they were found to be nondischargable. 2. seriously doubled the company would follow through on their threats to object.

Please remember that each case is different. If a creditor objects or not seems to depend alot on the individual creditor and on the amount owed. However, also remember they have to have a valid reason to object. They can'ts just object without a clearly definded reason that is allowable under the bk code.

[millerc507]

Thanks! I know we really should not have anything to worry about. The cc we used most recently, but more than 90 days, was for groceries, gas, clothes for kids, and other necessities. Definitely no luxury items. This has just been so stressful, it is good to hear from other people who have been through it.

[frankies_mom]

So then if a creditor objects, will you generally hear it from your lawyer first rather than seeing it on PACER?

[desperation]

So then if a creditor objects, will you generally hear it from your lawyer first rather than seeing it on PACER?

I know I did. My lawyer told me about it right before my 341. I have one creditor thus far trying to press the issue. I asked her if they could give me a list of the things I bought. I have been doing business with this creditor for almost 7 years. I was told by my attorney that they didn't specifically state what items were supposedly secured, and I was asked if I could remember what I bought. 7 years worth of purchases, and I can only remember a few things, nothing over $600 except for one really tired old computer thats only worth about $50 now in spare parts.

I asked my attorney to ask them to provide a list if they could, and I would see if there was anything I wanted to reaffirm, but short of that if they couldn't... well then they were more than welcome to come get their stuff.

Haven't heard anything back yet. I'm only 2 weeks past 341 tho. Who knows what the days ahead will bring, but so far not a word out of any of the other creditors I have dealt with.

[Logan]

What if you have a credit card with a balance of 15K and then Cash Advance 2500 within 30 days of BK. Do they just come after the 2500? So could you just reaffirm that portion of the debt from the creditor?

Logan

[hocus]

I was going to do a balance transfer so I took $11800 from one card as a cash advance. When I decided to file I put $10000 back and kept $1800 as a cash advance. They could have objected to the $1800 but they didn't. Because I actually never moved the money from one card to another, I could honestly answer no when the trustee asked me if I had done a balance trf within 70 days.

[lrprn]

What if you have a credit card with a balance of 15K and then Cash Advance 2500 within 30 days of BK. Do they just come after the 2500? So could you just reaffirm that portion of the debt from the creditor?

Reaffirming a non-secured debt voluntariily is never a good idea. Better to take your chances that the creditor won't file an objection. We have several examples of members here where big charges and cash advances have been made within 90 days of filing and the creditors do nothing.

If the creditor does file an objection to the cash advance or any other recent charges, you can decide what to do at that point.

Ask your lawyer what is the best option in your particular circumstances.

[Logan]

lrprn,

I agree but I was thinking I may have to pay some back so I would just reaffirm that portion. I'm not sure how that works.

Logan

[manglicmot]

Here is the final result for someone here who received an objection from Chase: http://bkforum.com/showpost.php?p=87827&postcount=36

[desperation]

question for Irprn/or anyone else going thru this

I have a creditor chasing me for $2000 worth of debt. Secured credit in their words.

They contacted my attorney and stated I owed them this amount, and offered
a settlement for $50.00 a month for the next 5 years. My attorney didn't give me much advice, and just wanted to know how I wanted to act on it. Also I was asked if I could remember the things I bought.

I don't remember half the things I bought, and I'm quite sure that "some" of the things I've bought have gone into the great trash heap of life, or to the local Goodwill, but that being some years ago.

I know you can't give legal advice, but anyone been here done this I guess is the question? Creditor is Best Buy if that helps.

[CindyLou]

Tell best buy to get lost! Their card is NOT secured. They use this tactic to get you to reaffirm. Tell them the stuff is long gone. Offer to have them come pick up one or two things you can remember that you bought there. They are blowing smoke!!!!!!!!!!!!!!!!!!!!!!!

[JRScott]

We are going to be filing Ch. 7 within the next two weeks. We are well under the median in NC. Thanks for all the information provided by the members on this board. We are really nervous about how the whole process works and the 341. Here is my question... what happens if a creditor objects? What is the process? We have one cc that was used last a little over 90 days ago. Most of them have not been used in 8-12 months. Any input is appreciated. We are so ready to get this going and the past six years of unfortunate circumstances behind us.

Hi miller

I'm in North Carolina myself, what district you in?

I'm in the Western district, today is my 341, little nervous (well good bit nervous).

If you've not used any of them for more than 90 days you should be okay

[JollyGG]

I have a creditor chasing me for $2000 worth of debt. Secured credit in their words.

They contacted my attorney and stated I owed them this amount, and offered
a settlement for $50.00 a month for the next 5 years. My attorney didn't give me much advice, and just wanted to know how I wanted to act on it. Also I was asked if I could remember the things I bought.

I don't remember half the things I bought, and I'm quite sure that "some" of the things I've bought have gone into the great trash heap of life, or to the local Goodwill, but that being some years ago.

I know you can't give legal advice, but anyone been here done this I guess is the question? Creditor is Best Buy if that helps.

Best Buy is well known for doing this. As far as I've seen they are all talk and no action. Just ignore them. If the they actually do file an objection (which I doubt they will do). Deal with them then.