Creditor Objections to Discharge, Part I (how likely are they to object?)

[CindyLou]

HHM, don't forget to make this a sticky!!!

[lrprn]

Originally Posted by cindylynnsmith

HHM, don't forget to make this a sticky!!!

Done

[mackdriver]

Originally Posted by cindylynnsmith

One of our members, Majormike, purchased gift cards (though in larger amounts) but they were considered luxury purposes by the credit card company. The company has objected to the discharge of that debt.

maybe you dont understand.

I said make a CASH ADVANCE. what you do with the money after that doesnt matter... its a bulk cash advance.

Like they are really going to go investigate what I did after I got that cash, how would they even go about that... its 700... you are joking right. It would cost 10 times that to hirer someone to try and garner my records and investigate where every last cent was..

and for what? to object to 700..

[HHM]

You are right...for that amount not much is going to happen.

As far as them finding out, (1) they could ask you at the 341 meeting, in which you will be under oath (2) if you deposited the money in your bank, they merely have to look at your bank records.

But in any event, borrowing money with the intent to not pay it back is FRUAD, but will you get dinged for $700, probably not.

[stacykv]

did you have your creditors mtg yet at if so what was it like?

[newstart4me]

"Also, there is a 90 day period for PT's."



What does that statement mean? Does it mean that the trustee will only look at PT's that occurred 90 days prior to when you file? I'm reading/studying a book mentioned on this board about the Ch. 7 BK process, but this is a new planet for me. Thank you for your extremely helpful posts, and the clarification on the above statement!

[newstart4me]

Thank you in advance for your input! Let me also apologize for rambling. I've been up all night reading and fretting. I am 'doing my homework', I have a credit counseling appointment next week, and I am reading/studying Nolo's downloadable book (better than carrying around book w/bk on the cover). Just before I got the guts to search for a bk forum, I did a balance transfer for $3500 from one of my credit cards into my checking account.#%!* I did this to keep me afloat literally. If I understand the info I've read here, I need to wait 6 mos. to be on the safe side before I file, and I need to make minimum payments on that card at least. I am an unemployed teacher in California where many teachers who had contracts were pink slipped because of severe cuts in the budget. Even substitute teaching jobs severely dropped off in all three districts I have been working in this year. I am not eligible for unemployment benefits in my situation. I have a time share I cannot afford to keep (much less use), so I am looking into selling that. I have been applying for the few jobs that have been posted in this area (me and all the other pink slipped teachers), as well as jobs out of state. I literally have nothing left to live on. I do have credit cards, but don't want to get into more debt. My back is against the wall. I let my guilt, fear and pride prevent me from looking into bk because of the stigma. My older sister went through it and my father was/is so critical of her because of it. He's pretty critical of everyone in his own family come to think of it... If I have no source of income other than the balance transfer I just did and the pennies I will be able to earn in the one year round district in the area when they start the new year next week, the minimum payments will gobble that up in no time. If I quit paying the minimums on all the credit cards but the one I just did the balance transfer from, won't the interest rate go up and the late fees start to accumulate? I have a car that I'm leasing w/o any other vehicles to use for transportation to sub and hopefully to get to interviews. (The lease ends in May.) What are the pros and cons of continuing to make payments on it? I haven't been to the dentist for several years (since I had my last teaching contract in 2005), and I have a crown that's been loose for months. I'm afraid I'll need a root canal as it is. Is it advisable to go to a dentist and not pay? I have stripped myself down to bare bones on everything in my life. The concept of a 'normal life' has been history for me for quite some time. No luxury expenditures here but organic yogurt! I have read many of the posts here, and am pretty new to forums. I apologize if I posted too much, in the wrong place, etc... Thank you for your insight and feedback. Two other quick questions before I stop: 1. How do you apply for the fee waiver to file? & 2. Is it a good idea to call creditors before you stop paying and give them a P.O. Box so that other people you live with won't see the nasty collection letters, etc... Thanks a million $$$(LOL).

[JRScott]

Sorry noone has posted back here, sounds like a tough situation new.

Try not to panic.

It is true that it is best to wait 6 months. However if you can't afford the minimums send less but send something so that you can prove you attempted to make some payments. Try to send at least 2 payments at minimum if you can. After that cut it loose and wait the full 6 months to file. I think you'll be okay.

[gymbo]

WOW Heyu! That's quite a rollercoaster! Best of luck to you. Focus on the new baby - that's awesome! Even without the 6 figure income! Good luck.

[amf]

how long the credit cards keep your application;what if you lie on the application about your income or you change one #from social security;can be problem in the BK;

[HHM]

Lying about your income is one thing, changing one # in the SSN is another. You do not want to do the later as that will more than likely put a fraud alert on your Credit Report (I have seen it done), because the name and SSN do not match (note, you are receiving the credit card offer because the bank pulled your credit report, and guess what number is on the credit report).

But yes, technically, lying on your credit app is grounds for an objection, but I have never seen it actually used by a creditor to object.