Objections

[Overmylimit]

When I file in a month or so I know there is going to be objections just due to the shear size of my unsecured debt. My question is what if they say half of the debt cannot be dismissed then what happens? Do they get back in line and start going after judgments?

[justbroke]

When I file in a month or so I know there is going to be objections just due to the shear size of my unsecured debt. My question is what if they say half of the debt cannot be dismissed then what happens? Do they get back in line and start going after judgments?

I am slightly confused by your question.

If you are filing Chapter 7 and listed $300K in unsecured debt, the Objections can only come for fraud or a "non-dischargeable" debt.

First, let me address non-dischargeable. Let's say you used your nifty VISA Signature Card to pay your Property Tax in 2007. Then you file for Bankruptcy in early 2008. The Bank issuing teh VISA may -- if they are smart and on top of things -- object to the debt being discharged on the grounds that Taxes are not dischargeable!!!

Second, the other area is fraud. If you went on a spending spree with the Platinum American Express card, 30, 60, 90 or even more days (depending on if you purchased "luxury" items), the issuing Bank may object to the debt being discharged on the grounds that you never intended to pay back the debt and were "running" the cards up on purpose.

If you end up with debts of that type (fraud or other non-dischargeable debts), and the creditor is successful at sustaining a motion for relief from stay, they will then pursue you in non-bankruptcy court.

Bankruptcy pre-planning is essential to people who may have gone crazy with their credit cards prior to filing! Delaying a filing by a month could make the difference. An experienced Chapter 7 BK Attorney is your best friend if you were living large.

[WharffRat]

I had $175K in unsecured debts and 2 lawsuit from J P Morgan/Chase for $30K included in that. And no one showed up. I had all my ducks in a row and there was no indication of fraud. Not one of the unsecured debts had been used or received payment in 6 months prior to the Meeting of the creditors.

Hope this helps...

[TEW]

non-dischargeable student loans, taxes, fraud, DUI fines there are more but not CC debt.
Unless it falls into categories as that Broke mentioned.

[Overmylimit]

Yes this does help, but I don't remember mentioning anything about 300k in unsecured debt. Its 490k in unsecured debt hence chp 7. I never did spend on luxury items or live large, but it was mostly business debt. I kept borrowing from the credit lines to put into the business. I had lots of payroll, taxes, equip etc. So even just a few months back I was using thousands a month to stay afloat. This is why I think they will object.

[Tbornetun]

How many is a few? Stay afloat by purchasing what? The amount of unsecured debt is not the issue, it is timelines and what you purchased.

[Overmylimit]

Basically what it came down to at the time was if the business had 15k in payroll due and I was short 3-5k I would write a check from the credit line to cover it, then put it back the next week. However when the next week came we would be short another 5k and so on and so on....we lost a few SIZEABLE accounts that really killed cashflow. I just didn't realize at the time how bad of a hit I really had taken, so I kept borrowing thinking I would be putting it back in a short time...