What exactly is an 'objection'?

[momof5]

I was just reading a couple posts about the fee that attorneys charge for handling objections and I am curious as to what exactly constitutes an objection.

Lets say you list all your creditors and one of them happens to be a person who you had an originally friendly personal loan with and they are the reason you finally broke and had to file bankruptcy... ( such as owner of company who no longer needed your services after 15 years).

If they come to the 341 meeting to try and get you to have to pay them back would that be an objection? Or is there more to it than just a person saying..' I want my money '

Do they have to show some type of proof immediately that it was a fraudulent loan in order for the trustee to allow an objection to continue?



We paid back half the loan and then husbands position was terminated. A couple days later they sent a nasty nasty letter demanding the rest of the loan money immediately or else.... well we had no money thanks to them so obviously we were not going to send them anything. We needed to make sure the kids were fed.

I am thinking that when they get notice of our bankruptcy they are going to take it personal and knowing what kind of people they are ( I believe it was Flamingo who mentioned those that come from "Evil Town" *lol*) will do what they can to make things difficult for us. We cannot afford thousands of dollars in attorney fees to make these people go away.

Would we just defend our position that there was nothing fraudulent about the original loan because he was employed by them at the time it was taken out and that half was paid back until THEY caused our loss in income?

Would this be a good defense? or am I getting ahead of myself in thinking how easy it is for individual creditors to object and actually win that objection?

Thanks in advance....


** EDIT TO ADD: I did read the FAQ about Objections above but I dont see anything about 'personal' loans from friends,previous employers etc.

[BassBoy]

Basically, a creditor will object to the discharge of the debt with them.......just the debt of the creditor objecting. The reason for the objection MUST BE legititmate. Around here, you'll read about creditor objections, but that's usually when the debtor may have used credit cards to buy items within so many days of the BK filing. For example, luxury purchases. Making an objection out of spite or revenge is not going to go well with the Trustee or the court. Not to mention, the loan was obtained in good faith because you stated that half of the loan was paid back. Where's the fraud when you take on a loan and pay it back. There is no fraud. Fraud would be taking a loan with the intentions of not paying it back.

[AngelinaCat]

Hi Momof5:

A creditor objection has happened to us, although the person claiming it has never been someone we have ever done business with--nor would we. Nor does he have a judgement or lein of any kind upon us. Yet we have to defend against it anyway. Here is the thread including the original post that I made back on April 16, when we found this site:

http://www.bkforum.com/showthread.php?p=153681#post153681

I sincerely hope you will not encounter any problems. Good luck.