Can/will trustee's object over large unsecured cc amount?

[fedupw/ccdebt]

Have done some searching on here for similar info, but feel like I am in a daze at this point...

My question...is it common for a trustee to object a filing on someone with a large amount of cc debt? My wife and I have a pretty hefty amount, with most having gone over the years to medical stuff, house/car repairs and maintenance, emergencies, etc... really not much luxery stuff.

I guess I am just concerned and worried about the amount we have, especially now as the interest and late fees have been accruing the last few months.

[keepmine]

Large unsecured debt may attract extra attention from the Master Trustee but, just because your debt is large isn't grounds for an objection. Point of reference, I discharged $71K and there were no questions.

[HHM]

The amount of debt is not the issue, there are no limits to what can be discharged in a chapter 7.

The issue is more about "when" the debt was occurred, and over what "time period" was the debt incurred.

For example, if you have $100,000 in unsecured debt, but it took you 3 years to accumulate that debt, the US trustee is not going to give it a second look. But if you accumulated that debt over 3 months, and declared BK 6 months after that, the US Trustee will almost certainly chime in (as will your creditors most likely).

For 98% of debtors filing BK, they have nothing to worry about. BK is a fairly routine process and most cases go off without a hitch. I understand the fear of the unknown, but most debtors end up worrying about issue they don't really need to. If you educate yourself about BK, you will sleep better.

[SinkingFast]

Cases involving $100K+ in unsecured debt are a Red Flag for the Trustee's and the US Trustee's office.

But as HHM said,............ Debt accumulated over a period of time is one thing. Large amounts of debt acquired shortly before filing is a whole different story.

If you've had your accts for several years and the $$$ amounts just creeped up, chances are, you don't have anything to worry about.

And the fees and such,.......... Don't sweat that either. The extra interest and fees is "funny money". It's not for things you charged.

[jp2861]

Can you share what reference you used to say 100K+ is a red flag. I can't seem to find any reference when doing a search. It would be a big help if when posting comments like this you also post where you got the information or data from. I think it would help weed through fact and assumption. Thanks!

Cases involving $100K+ in unsecured debt are a Red Flag for the Trustee's and the US Trustee's office.

But as HHM said,............ Debt accumulated over a period of time is one thing. Large amounts of debt acquired shortly before filing is a whole different story.

If you've had your accts for several years and the $$$ amounts just creeped up, chances are, you don't have anything to worry about.

And the fees and such,.......... Don't sweat that either. The extra interest and fees is "funny money". It's not for things you charged.

[Bandit]

Can you share what reference you used to say 100K+ is a red flag. I can't seem to find any reference when doing a search. It would be a big help if when posting comments like this you also post where you got the information or data from. I think it would help weed through fact and assumption. Thanks!

It can be less than 100,000, but again, it is not the amount of debt by itself. All you have to do is get your phone number or birthday wrong on the papers & it can raise a red flag.

Um, I am pretty sure anything over 10,000 to any one unsecured creditor can raise a red flag. They also look at ratio of debt to income. There are several factors though, not just the amount of debt itself and I think if you reread what Sinkingfast said between the lines of the first & second line & look far enough on your own you will find what was written is true.

Also, having high debt with no proof of what happened with the money as in no assets, he can ask "Where did the money go."

I read a case where motion to dismiss came about for less than (ten)10,000. She was audited and denied a discharge a whole year after she used the cards & ended up having to pay back because of intent not to pay... & get this, she spent it all at Walmart.

There are a whole bunch of red flags & say, if a creditor objects then the judge uses 11 or 12 different factors to determine fraud. This is not new news.

OTH- it is also true that high unsecured debt and luxury alone does not warrant bad faith & the courts know this.

This is only my 2 cents from what I have read & legit documents, real attorneys & cases. Don't just believe what I say though, keep searching for yourself and see.

[Bandit]

If you educate yourself about BK, you will sleep better.