Creditor objections

[manglicmot]

How soon after the 341 meeting will objections appear? I'm trying to get a sense of what to expect between the meeting, discharge and closing. I guess I'm speaking mostly of a chapter 7 case. Even if there are no assets, a creditor may still object, and I'm curious as to the time frame that it usually happens in.

[poorme]

Well, they have 60 days to file an objection, so it could come any time in there. Unless you have an unusual creditor with a large unsecured debt, we usually don't see objections files in a no-asset case. But, there's always the chance.

[CATCHMEIFYOUCAN]

I filed a no asset case ch7. I didn't see any creditor objections within and up to the 60 days, however the last day for creditors to object the trustee filed a notification of assets ! creditors have until april to file a proof of claim and i still have no idea what asset he is looking for? I owe taxes so it won't be a refund THATS for sure. Although my case has been discharged at the end of january, theres still that asset notice looming above, my lawyer said not to worry, so I guess I'm worrying less.

Best of Luck, Catchmeifyoucan

[HHM]

How soon after the 341 meeting will objections appear? I'm trying to get a sense of what to expect between the meeting, discharge and closing. I guess I'm speaking mostly of a chapter 7 case. Even if there are no assets, a creditor may still object, and I'm curious as to the time frame that it usually happens in.

They have up until the 60 days after your the date of your first scheduled 341 meeting to object.

But really, do you have any reason to suspect an objection by creditors. Creditor's don't object out of the blue, they need a reason that is recognized by the BK code to argue their debt should not be discharged. The most common reason is significant purchases, cash advances, or balance transfers within the prior 6 months of filing BK. The amount usually has to be over $2,000 for a creditor to object if the transfer was made between the 3-6 month time frame before you filed BK, a creditor may file an objection for a lessor amount if charge/transfer was made within 90 days prior to filing BK.

[JollyGG]

We had two creditors threaten to object. They did so right around and after the 341 meeting. They sent a letter to our lawyer first basically threatening to object and offering a settlement.
In our case the settlements were not good enough for us to take them so we sat it out to see if they would actually object. Both were for smaller amounts ($2500 and $1500) within the 70 / 90 day rule. However, neither actually objected.

[howie789]

adversary proceedings

i had to use a credit card to pay off an education loan co-signed by my dad--he isn't in the greatest of health and would have a heart attack if he got collections calls..my question is i was in dire straits--i got an application in the mail from a credit card lender, all i had to do was put my household income (i'm single and rent) and my signature.. i put almost 2 and 1/2 times my salary as the income in order to get the credit..now i am scared i will get an adversary complaint after the notice is sent out that I frauded them..why was I granted this credit line ($6000) when I was $47-48K in debt though? don't credit analysts check this? i am scared--should I let my atty know or hold off and pray during the 60-day window after the 341 and the creditor objection dl that this bank does not come forward and file a complaint? the bk not filed yet--it will be oct of 2007...any advice??

[Frank]

Why should the creditor reject your application? It sounds like you stated a healthy income. I imagine if you were rejected you would of thrown a fit.

[jal1129]

How long ago was this?

[howie789]

transferred the debt 3 - 4 weeks ago--atty told me to make 6 months of good faith payments (min pmts), then file, but I havent told her the household income i entered..what should i do, should i admit to my atty this??

[keepmine]

Yes, you should inform your lawyer.
If the creditor does file a formal objection, you just try and settle with them.
I'm no fan of cc companies and banks but, don't blame them for your intentional misrepresentation. They've a right to rely on the applicant to be truthful.

[frankies_mom]

So is it worth it to make payments on CC

I guess I am still a little confused. Is it better to still give something to the CC before you file... even if it is only 20 bucks? Some say pay and others say as soon as you know you will be filing to not waste your money on the payments. Or maybe there is no right answer? The CC will do what it wants regardless of payment history?

[BKTango]

I guess I am still a little confused. Is it better to still give something to the CC before you file... even if it is only 20 bucks? Some say pay and others say as soon as you know you will be filing to not waste your money on the payments. Or maybe there is no right answer? The CC will do what it wants regardless of payment history?

It's best that once you know without a shred of doubt you are filing and have started the process of preparing yourself for it....stop paying. You are just throwing money away, a lawyer will even tell you that. Why pay a creditor $20 when they are expecting $120 and you could have used that $20 for food or gas? That creditor will not give a hoot you just sent them 20 bucks they will want to know where the rest of the money is, and to them that $20 won't even cover your late fee. But...there are exceptions to when you may want to continue payments as long as you can afford them without racking up more debt, and as long as it's not preferrential, then you may want to such as in the OP's case. Since they took out a line of credit in bad faith, put debt on it, and are already in the process of filing, they may need to make payments to not have a fraud flag come up. But sometimes that just means now you will have a preferrential payment made the trustee will want back. It's not always clear what is best to do, but if you really can't afford to continue to make the payments (and most can't that's why they file bk) then stop doing so, use that money to pay for necessary living expenses. You will have to learn to do that anyway.

[jal1129]

Okay, this is only my opinion here, but if you just transferred $6000 on to a cc and then never even make 1 payment and file bk that is just asking for trouble. Especially if they prove that you consulted an attorney 3-4 weeks after they granted you credit and waited 6 months to file, then they will say you knew you could'nt repay it when you asked for the credit.

Do what your attorney told you to do and make the minimum payments for AT LEAST 3 months, 6 months would be even better (as he/she advised) and then just maybe you will be able to slip under the radar.

When people say stop paying cc as soon as you know you are going to file that is in general for cards you have had for long periods of time with no new major purchases. When you have obtained new credit or made a big cash advance or bought a major purchase on credit recently then the advice is to make at least 3 minimum payments to show good faith.

[Spartan]

I guess I am still a little confused. Is it better to still give something to the CC before you file... even if it is only 20 bucks? Some say pay and others say as soon as you know you will be filing to not waste your money on the payments. Or maybe there is no right answer? The CC will do what it wants regardless of payment history?

This is totally depending on the circumstances. 99 out of 100, paying unsecured before filing, is a waste of money. HOwever, in situation where you have made a big purchase or a cash advance, IF you don't even make any payment, that smells like intent to defraud. To avoid such appearance of abuse, it is recommended that you at least make the minimum payment. Such payments would at least show that you do intend to repay.

[Spartan]

Okay, this is only my opinion here, but if you just transferred $6000 on to a cc and then never even make 1 payment and file bk that is just asking for trouble. Especially if they prove that you consulted an attorney 3-4 weeks after they granted you credit and waited 6 months to file, then they will say you knew you could'nt repay it when you asked for the credit.......

And if they found out that you inflated your income, that is like 3 strikes.....

Best bet. Make minimum payment. Wait out 6 months. And save yourself a lot of headache during BK.