Trustee ask for loan agreements for credit card or loans

[mcordry]

Has anyone been asked by the trustee for loan agreement papers that you signed from credit cards or bank loans? If so what were they looking for specifically. I am a little worried because I "fudged" alittle on the income to obtain a credit card. Now keep in mind that most of my credit cards are 20 to 30 years old.

[justbroke]

No. Are they asking for a specific loan/credit card or for everything that you have. Most Trustees understand that almost all credit applications are done electronically and over the Internet.

Are you an asset case?

[mcordry]

thanks for responding justbroke.... I haven't filed yet I am just doing tons of research and trying to prepare for all the "what ifs". I co-own a hairsalon , and of course I am going to try to do everything in my power to keep it open... but I had read on the internet that some trustees want copies of the loan agreements. I have my first appointments set up next week... I have booked 3 so far. I hope that the perfect attorney is in that first 3. I am sure that everyone else was nervous and concerned about exactly what the trustee is looking for, so that is why I am doing as much research as possible (sometimes too much I think lol.)

[LadyInTheRed]

The trustee doesn't care what you told the creditor your income was. If the creditor decides to object to dischargeability of their debt based on fraud committed on the credit application, then your application would be evidence in the adversary proceeding between you and the creditor. The trustee would not be involved. Objections to discharge of a specific debt are rare as far as I can tell and I have never heard of a creditor objecting to discharge based on understatement of income on an application.

I also cannot imagine a trustee requesting a copy of a loan agreement or application in very many situations. I am sure it happens if there is some issue about the priority of the debt. But, the trustee generally is not concerned about the validity of a debt. The trustee is looking for non-exempt assets and unreported income.

Your attorney may request copies of loan agreements, but that doesn't necessarily mean they will go to the trustee. Your attorney will not ask for credit card applications or agreements because s/he knows nobody has those and they aren't relevant in the vast majority of BK cases.

[justbroke]

Thank you LITR... that explains it perfectly!