How much does it cost creditors to challenge your bankruptcy?

[CUbuffs90]

Hey guys, i saw something on MSNBC that said creditors will challenge your bankruptcy if its worth it but it costs them a good amount of money to do it. How much does it exactly cost them and besides the lawyer what are they paying for?

[HHM]

If we are talking about mainline creditors, not much, the attorneys typically work on contingecy depending on the nature of the dispute. The only cost is the filing fee.

[btbeme]

Hey guys, i saw something on MSNBC that said creditors will challenge your bankruptcy if its worth it but it costs them a good amount of money to do it. How much does it exactly cost them and besides the lawyer what are they paying for?

For most of them it is a cost of doing business. The bigger issue is whether they feel they could win a challenge. Outside of 90 days for a credit purchase (up to a year for a cash advance) it is tough for them to make a valid case. Unless you give them a reason (by breaking some of the hard-and-fast BK guidelines and laws) the cost of a challenge isn't the issue.

For a local creditor...they sometimes make it a sport. And they sometimes show up at the 341 and make entertaining accusations.

[frogger]

I saw a local creditor try to challenge a debt at a 341 hearing. Started ranting and raving about how this was hurting him and that the debtor had no right to go bankrupt against him. Took about 15 seconds of listening to that and the trustee nipped it off quick and asked him to leave.

[tobee43]

most of those atty's for the "larger" creditors are on retainer of as hhm points out on a contingency basis. many try to do more than one at a time to save costs for the firm. you'll see the same ones over and over walking the hallways of the bk courts. bloodsuckers just trying to pick up or suck up a few drops here and there. (i guess someone has to do it?)

[malf1204]

I had an out-of-state creditor threaten me with an AP. I visited an attorney and he figured it would cost them a minimum of 3000.00 to file an AP. There is a $250.00 filing fee plus the attorneys fees. The creditor must have an attorney who is a member of the local bar on record in my district. There is also no guarantee they will win. My debt was for 1329.00 so I never heard from them again after the threat.