Worried about brand new Lending Club loan :(

[gava1910]

Ugh. We recently took out a large loan through lending club, which is peer-to-peer investing. I have made one payment last month. We never in a million years thought it would come to bankruptcy, and we used this loan mostly to pay off credit cards, back taxes, and some business debt. Our lawyer said he didn't think it would be able to be disputed since it was used to pay off debt...but I am still nervous about it. I just called them to stop our automatic payments and switch to checks (since we obviously aren't going to pay them now). The guy was very suspicious and stated so. Do you think that this will not be able to be discharged because it is so new? We aren't going to file until May, so it will be 90 days then...but I just feel so crappy about this. Especially since its not a bank but an investor. I never had any intention of not paying, but things spiraled out of control quickly.

[LadyInTheRed]

Our lawyer said he didn't think it would be able to be disputed since it was used to pay off debt...but I am still nervous about it.

I've heard that before and it makes sense. For a debt to be presumed fraudulent, it must be for luxury goods and services. If the creditor objects to discharge of the debt, it would have to prove that you didn't intend to pay it off at the time you incurred the debt. That's hard to prove. Consolidating a bunch of debt is what somebody does when they are trying to find a way to manage it, not when they are planning to file BK.

Don't feel bad. In a lending club, at least the loss is spread among many people. At least that's my understanding of how they work. Those people took a risk by investing in loans. Their risk didn't pay off this time. If they can't afford the loss, they shouldn't make the investment.

[lukesky]

I've heard that before and it makes sense. For a debt to be presumed fraudulent, it must be for luxury goods and services. If the creditor objects to discharge of the debt, it would have to prove that you didn't intend to pay it off at the time you incurred the debt. That's hard to prove. Consolidating a bunch of debt is what somebody does when they are trying to find a way to manage it, not when they are planning to file BK.

Don't feel bad. In a lending club, at least the loss is spread among many people. At least that's my understanding of how they work. Those people took a risk by investing in loans. Their risk didn't pay off this time. If they can't afford the loss, they shouldn't make the investment.

LadylnTheRed, I hope you donkt mind me asking and I know it has been several years ago but I wonder what happend to gava1910 and their case (LendingClub Loan)? Just very curious since I also have a LCL and have not had my "confirmation hearing" yet. If you can tell me anything are even if gava1910 are still here as members so maybe I can bend their ear as well. Thanks.

[LadyInTheRed]

lukesky , all I can do is tag gava1910 . Hopefully, he/she will get a notification and come let us know what happened.

You really should not worry. There is nothing special about a LCL that should cause you problems. In order to object to confirmation of your plan or to discharge of their debt, they have to have a valid reason.

[lukesky]

lukesky , all I can do is tag gava1910 . Hopefully, he/she will get a notification and come let us know what happened.

You really should not worry. There is nothing special about a LCL that should cause you problems. In order to object to confirmation of your plan or to discharge of their debt, they have to have a valid reason.

Thank you so much LadyInTheRed. Every thing was gong fine. One of my credit scores was 702 the others upper 600's. I was behind on nothing. All was good. Then one horrible day out of the blue I was just looking online to "see" if I qualified for a loan. I found LCL, put in some numbers and it came back and said "you are approved for $18,700". Seeing this kind of statement all of my life I thought "yeah right" and thinking it was not real and a joke I clicked yes/send. Well at first I was happy, amazed that I got the loan...then a day later I woke up crying thinking what have I done. So I used the loan to almost pay off my car, pay way down credit cards. I knew I was in trouble becuase a month later I found out I have a tumor in my neck and had to operate on my foot so I got on a work paid medical leave and I am still on it. My overtime went out the window. So I took what was left of the loan and retained my present lawyer. My lawyer did instruct me at that time to pay 3 payments to LCL the last one being 8/16/16 two days before I filed my Chapter 13 petition on 8/18/16. I did tell the curcuit clerk at my 341 creditors meeting which was on 9/13/16 that I made a payment on on 8/16/2016 of $803.00 to LCL and he typed it in. And here I am. That felt good to say that. I just hope I did the right thing and LCL is a part of my payment plan (hopefully approved on 11/4/16) and get this over with. Thank you.