Lawsuit threat before discharge...

[DebtStinks]

Ya I just paged though petition and I found my wifes income numbers for 2007-current under the statement of financial affairs. There are no tax documents. They are just using her 2007 income numbers compared to the 2006 financial application.

Yes, joint petition.

[shabam]

When your wife filled out the application, does she remember if it asked for household income or her income alone?

Not that it really matters since applications are usually quite ambiguous yet they claim it's up to you to verify the information.

[DebtStinks]

I have a copy of the application... it says "Applicants Gross Income". Nothing about household income.

[AngelinaCatHub]

We provided our 2007 and 2008 tax info as part of the bankruptcy. We are 14 days from discharge and this is the first contact we've had from any of our creditors.

Our attorney has asked me to draft a letter to forward to them regarding the situation. Yes, and in that letter, sound as if you are mortified by false accusations of fraud as well as the fact that you paid them faithfully until hard times fell upon you, and state that they had accurate information to your knowledge at the time of the loans paperwork. The First Mutual attorney says they wanted to contact us first to see if we can explain why there was such a big drop from what was put on our loan app in 2006 compared to what shows in the 2007 tax return which was part of our bankruptcy papers. Never respond to them as not only may it be recorded, but if a second party is on the line, you then have a witness against you. Always go through your attorney.

I knew things were just going way to smooth. And, they still are. You will get your discharge and I doubt they will AP you.

This company is blowing smoke. How much did you say the debt was, and is it secured? 'Hub

[DebtStinks]

Thanks for the feedback and encouragement guys... it helps calm the nerves

The balance due on this loan is ~$9,800.

[AngelinaCatHub]

Thanks for the feedback and encouragement guys... it helps calm the nerves

The balance due on this loan is ~$9,800.

Was the loan secured? What did you purchase with the loan and what did you pay back in three years? The opening balance and current balance and interest rate? I'm looking for other loopholes. 'Hub

[DebtStinks]

Here are the details:

Opening Balance: $10,723
Current Balance: ~$9,800.
Interest Rate: 11.99%
Loan Type: Unsecured
Loan Use: New windows for our house (which we are waiting to have forclose)
Payments: 144 monthly payments of $140.77

[shabam]

Personally, I think they are bluffing you. There has to be a range of breaches for them to win an AP. You have already made $5K worth of payments, so it's almost impossible for them to prove malicious intent.

If anything you should be suing them considering those loan conditions. 144 months. That means you would pay back double the loan.

[DebtStinks]

Personally, I think they are bluffing you. There has to be a range of breaches for them to win an AP. You have already made $5K worth of payments, so it's almost impossible for them to prove malicious intent.

If anything you should be suing them considering those loan conditions. 144 months. That means you would pay back double the loan.

Well thats the upside to this whole bankruptcy process for us... we are done making stupid financial decisions. We are in control of our future, not the banks and credit card companies.

[shabam]

Well thats the upside to this whole bankruptcy process for us... we are done making stupid financial decisions. We are in control of our future, not the banks and credit card companies.

I am in a similar boat. After returning from overseas, I applied for credit and under the household income field, I stated our anticipated combined income. I had a job but my wife did not. Unfortunately my wife did not end up finding work, so now it looks like I deliberately tried to defraud them. As it looks like I overstated my income by $50K.

[2manybills]

I think they are bluffing. My question also would be, why didn't they verify income. Where is their responsibility to confirm income as stated?

[music12]

the tax returns should not be on pacer! if they are, your lawyer seriously screwed you.

[DebtStinks]

the tax returns should not be on pacer! if they are, your lawyer seriously screwed you.

Nope my mistake... the only thing on pacer is my wifes 2007-current salary which is under the Statement of Financial Affairs.

[destitute]

you can always offer them the windows back!

[DebtStinks]

you can always offer them the windows back!

They can have the whole damn house! We are in one of the harder hit areas in the Central Valley of CA. We owe $356,000 on a house worth ~$110,000. We will be the 3rd forclosure on our block in the last few months.