New FAQ on Creditor Objections!

[Bell30656]

Thanks for taking the time to put this up. While I had no objections, I believe that the information that I learned on this forum by reading many threads helped me to avoid the common mistakes that would have led to objections.

[shabam]

Go back and read the FAQ link.

They can go back as far as they want if they think they can prove you intentionally borrowed money with no intent to pay it back.

But practically speaking, 6 months is the cut off.

That is true. My lawyer, who is also a trustee, made this point clear. That the creditor can look back at 2 years worth of transactions if they wanted.

[deepin]

I realize that most objections/APs end in some kind of settlement or reaffirmation agreement --

However, are there situations where a creditor would not settle or at least reaffirm?

It seems that most debtors would be in no position to begin to cover the legal fees involved in an AP.

[Brighterdays]

I was seriously concerned with this too. I started a thread and I have asked the same question. Nobody on here has gotten any objections. I think I read about 1 guy who got an objection over a cash advance, but it was blatant and withing a month of filing. Also one guy charged up 6k within a month of filing and nothing happened.

In fact I have extensively researched the subject online and found no horror stories. My lawyer has been practicing for around 8years and has never had an objection(knock on wood). Cash advances seem like the only worry if any

[deepin]

I realize that most objections/APs end in some kind of settlement or reaffirmation agreement --

However, are there situations where a creditor would not settle or at least reaffirm?

It seems that most debtors would be in no position to begin to cover the legal fees involved in an AP.

HHM, would you be willing to address this?

Also, does the court need to approve of the settlement or reaffirmation agreement?

[Brighterdays]

HHM, would you be willing to address this?

Also, does the court need to approve of the settlement or reaffirmation agreement?

What are you asking about? Car, personal, credit card.\

Some car finance companies will not reaffirm. Ford is tough and credit unions that have cross colaterilization(ie. you are bk'ing a CC and you have a car loan with the credit union).

As stated ealier, I haven't heard of anyone getting an objection on a credit card. i think it just isn't cost effective to them. Since most people who are filing ch7 are broke and have few assets. As for your question of not settling, depends on you situation. If they see an airtight case or fruad then they may not, but i haven't heard of any objections, let alone them not wanting to take what they can get.

As with the trustee having to approve it, I dont think so, but I am not positive.

In a nut shell, if you have a questionable charge, the worse case scenerio(as long as it isn't blatant fraud) is that you will have to pay the full amount. More likely you won't here a peep from them. If you do get an objection, then you have a couple options.
1.) try to settle for less(most likely scenerio( "IF" it happens)).
2.) You will have to pay the full amount back to them
3.) You can fight it. This option may cost you more if your lawyer has to do extra work.

All 3 options will only effect that charge and not the rest of your bk case. Ie... IF discover objects to your 5k cash advance and you owe them 7k total from previous charges, then worse case scenerio (excluding fraud)is you have to pay them 5k, while the previous 2k you owed them and all other debts procede through BK. That is why you don't here about objecions, unless there is a blatant huge amount of money taken on a cash advance. As long as you realize you might have to pay back what was charged then there isn't really a down side. Just avoid fruad as the trustees have seen every trick in the book.

So let me ask you "Do you feel lucky, Punk" Just kidding,

[deepin]

Specifically, I'm wondering about settling credit card related objections.

Would the court need to approve these?

[Brighterdays]

Specifically, I'm wondering about settling credit card related objections.

Would the court need to approve these?

"If" the objection comes up, then yes, the court will allow a settlement, as long as the creditor is happy the court doesn't care. The trustee's job is to sniff out assets sell them and satify the creditors.

If you give us some specifics, we might be able to give you a little better answer. You might be amazed at what some people "got away"with on here. One guy charged up 6k with in 30days of filing and the cc company didn't raise an objection. I have heard some even have done cash advances and did get objections. Ask your lawyer as he will be more familiar with your district.

[TEW]

Specifically, I'm wondering about settling credit card related objections.

Would the court need to approve these?

Can you tell us why you think the creditor may object?

[Brighterdays]

Can you tell us why you think the creditor may object?

yeah, what he said We definately need to know what you are worried about, as it maybe nothing to worry about at all.

[musicbum]

It's easy to look up the odds of being involved in an Adversarial Proceeding. Just go to your BK district's website and look for the statistics link. In my district, it's about 4%. Seems like the level of objections is remaining about the same, while filings are up, nearly double what they were last year in my district.

hxxp://www.canb.uscourts.gov/court-information/case-statistics

(replace "xx" with "tt")

[Trybaby]

Go back and read the FAQ link.

They can go back as far as they want if they think they can prove you intentionally borrowed money with no intent to pay it back.

But practically speaking, 6 months is the cut off.

OMG, 6 months ago I hadn't even thought of filing. I was still robbing peter to pay paul and charging utilities and groceries to make ends meet. Holy crap. I'm not a fraud, just decided one day this all had to stop and after trying to work with the cc companies to no avail, bankruptcy was my only option.

[sufferingAZ]

OMG, 6 months ago I hadn't even thought of filing. I was still robbing peter to pay paul and charging utilities and groceries to make ends meet. Holy crap. I'm not a fraud, just decided one day this all had to stop and after trying to work with the cc companies to no avail, bankruptcy was my only option.

I also used my credit cards to get by for a few months. I was working with the credit cards to lower my payment... and they worked with me, most of them that is. In Oct I lost my job. I could no longer pay my credit card's. NOT EVEN ONE PENNY! So is that going to be red flaged as fraud???

[whipster1]

Time is your friend. If the charges were for food, gas, etc. you have nothing to worry about. Worst case you would have to pay some recent purchases back if they were large, say 500 or more.

[jb4lcm]

Straight up great info here. Thank you very much for taking the time to summarize and post.

It seems a bit obvious to me that you should voluntarily CLOSE the credit card accounts thagt you intend to discharge TODAY and wait 90+ days before filing. That way there is no way to cause the issue in the first place. Unless, of course, causing the issue is your intent.

JB