Creditors getting together to oppose discharge?

[chucho26]

Hi all,

Quick question.

In the USA, let's say I have about 15 000$ of debts on a credit card and I have another credit card that has 5000$ on it. When I file bankruptcy, can the two creditors GET TOGETHER to oppose the discharge, or is it each creditor who has to individually oppose the discharge.

I do realize that discharge oppositions are extremely rare and a bankruptcy lawyer told me that unless you really abused the system or you commited fraud, they will USUALLY not oppose anything less than around 9000$.

Thanks for your input.

[justbroke]

Each creditor is on their own. It gets nuanced because in most U.S. bankruptcy cases, unsecured debt typically sold prior to a claim being filed to junk debt buyers (JDBs) for pennies on the dollar. The JDB then files the individual claims, but you could call them a super-creditor at that point. Back in 2007 (and maybe through 2011) there was a lot of activity where these large JDBs did object to discharges or object to chapter 13 plan confirmation based on the entire portfolio that they acquired. I haven't heard a lot about that since maybe 2010.

Here is an example of one such objection to confirmation from eCast Settlement... a notorious JDB.

And here's another eCast attempt where they won the objection. In that particular case, "eCAST holds five unsecured claims against the debtors which represent approximately 34% of the total unsecured, non-priority debt". Please realize that most of these were just after the major overhaul of the BK code in late 2005 and everyone was testing what the Means Test really "meant."

References:

http://www.arb.uscourts.gov/orders-rules-opinions/opinions/evans/Washburn.pdf

https://ecf.almb.uscourts.gov/docpub/01603855454