Can a creditor...aka credit union do this?

[busbis]

We filed for a chp 13 and the credit union is submitting a claim on our visa and sig loan (which is 100% plan) with interest. How does this work? We plan on paying this off early, but they submitted a claim several hundred dollars more than than our principal bal. Can they do this and if so, if we payoff early how is the interst recaluclated because I am assuming they have calculated the interest over the term of the plan. We are planning to payoff within a year.

[magyar123]

Credit unions can do what they're allowed to do. One prime example is the cross-collaterization issue which allows them to rob you blind if you have a checking/savings account with them and file bankruptcy on one of their products such as a credit card or loan.

[rrockinggramma]

the trustee or you should object to this claim. First of all, it is unsecured and secondly, can only file for principal. Call your attorney and get the objection ball rolling.