What steps can I take to minimize the chances of a creditor objecting in my bk?

[aimhighlow]

I am planning to file Ch 7 BK in 6-12 months and during my consultation my attorney says that a creditor might object to large cash advances I have made awhile ago. I have stopped using my credit cards and I am also going to wait another 6-12 months to file to be safe.

I have been making minimum payments for 6 months since the cash advance transactions, but during this time I have also been using the cards for regular purchases. I have only made about 1 or 2 months of minimum payments after I completely stopped using the cards. So my plan is to wait before I file.

So I wondering if there are any other steps I can take to minimize the chances of my creditors objecting?

Thank you

[keepmine]

Since it's been 6 months since the cash advances and you did make minimum payments you should be in good shape. Stop using the cards and wait as long as you possibly can before you file. Time is your best friend.

[helpme2010]

I agree with keepmine. I did take out a $1,000 cash advance, but that was easily a year before filing bk. So the fact that you did make payments for a period after should work well for you. I think it is far easier for major creditors to simply write off your debt than it is to show up to a 341 hearing and object. My attorney says it is extremely rare for a company to even show up (and no creditor showed up for the dozens at my 341 hearing, nor for the 341 hearing before mine). The types that may object could be say a locally owned furniture store that just sold you $5,000 worth of furniture or something local, or if you really took your creditors for a major and purposeful ride and they want to make an example of you.

the 341 is really an easy process. Just have all your notes ready and listen to the types of questions they ask people before you. They ask questions out loud in front of all the people, so you will be able to watch each person go up before you. The trustee may throw you a curveball question or two, so don't just think your questions will be identical to the people before you. I was thrown a couple custom questions related to my specific case, but it was very quick, easy, and simple to get through.

[frogger]

Stop using the cards........

[AngelinaCatHub]

Stop using the cards........

I double 'frogger's' response. Do NOT use the cards for anything at this time. Hold off, have the money to pay the lawyer at hand. When the first CC attempts to sue you, wait until you get the subpoena then short circuit and file bk. Time IS your friend. 'Hub

[tobee43]

while i agree with everyone...i was surprised when our trustee asked us about when and if we had a 401....which we no longer did since we had used it for living and medical expenses over 2 years before filing!!!!!!!!

she didn't make a big deal about it...but did ask, which was odd, we thought. i just told her i don't remember where every penny went since it was over 2 years back, however, i know i paid the mortgage and food and other bills for certain just to stay bob water during the beginning of our hard times...now looking back i can kick myself for cashing it in to pay bills...AND our 401 was protected so...they ask off the wall questions anyway...

however, in this state the 90 cc charges seems to be more the rule than the exception...of course i guess unless you took a HUGE ask advance 6 months and 1 day before.

i think you'll be fine...however, if you feel in your heart on bit of uncomfort.........hold off your filing a month or two.........we did for 2 years just to make certain we could answer NO to certain questions on the petition...and see...it didn't even matter since we were asked anyway.

the other thing which is the most important....be truthful and honest......it's the best way to go forward!!

best of luck to you!

[tcreegan]

Hi all,

Just FYI, creditors don't object at the 341, they just can ask questions about your finances.

And since that is all in the filing, really is no need for a creditor to show up at a 341.

Anything they are going to do, object, fret, sweat, ...they file it in the BK court.

Tom in Colo

[tobee43]

tom!!!

i saw one show up and just sat at the table...i guess just to intimidate the poor couple...it was a bank and apparently it was something to do with a personal guaranteed loan they had...which was 5 years old!!

i'm sure the creditor lost...but the poor lady was crying....so i guess they can show up, but i know he didn't ask any questions at all of anyone...just once the trustee asked if any creditors where there he got up and sat at the table for the couple's questions...terrible!

[tcreegan]

Hi tobee!

Someone else had someone show up and said some nasty things (old landlord if I remember right) After a bit the trustee shut them down, not fast enough for my taste... And a family member in another case!

Oh well, what can you do....

Tom in Colo

[tobee43]

yeah tom...we can't do a thing about...i just felt badly for the poor people would were scared to death...

wish they read about creditors showing up at 341's on this forum...

[AngelinaCatHub]

Hi tobee!

Someone else had someone show up and said some nasty things (old landlord if I remember right) After a bit the trustee shut them down, not fast enough for my taste... And a family member in another case!

Oh well, what can you do....

Tom in Colo

Tom, it's my observation (and experience) that most AP's are filed by friends, relatives, business partners, and those who have a vendetta more than the wish to recover money. In our case my adversary made an AP for 188 MILLION dollars for a Civil lawsuit he never finished and wished to try in 4 hours in a Federal Court as it was going on for five years in Civil Court. He was a multi millionaire and was attempting to bring me to Criminal action (I did nothing criminal) but he had succeeded with other weaker people.

He was an atheist and only preached Karma. He wished me to die when I had cancer and was counting days (ad nausium) on our County's local forum, and he was right. His LAST Post at 11:00am April 1, 2009, he collapsed of a massive coronary, 10 hour open chest surgery, lost his kidneys, and stroked, and never posted again. Died 17 months later in pain, November 11, 2010. Yes, Karma. 'Hub