Chapter 13 Objection

Sass,any creditor can object to the bk.When they hold your creditor meeting,the court will decide on who gets paid and how much. Normally it is secured debt,priority unsecured debt, & lastly unsecured debt.As long as you are honest with the court,you should not worry about any of the creditors.Your attorney will be able to handle this.Just make sure you let him know if anyone tries to collect because that is illegal.

99 percent of creditors don't show up in BK court. Sears is the only one that my lawyer did not include because they always show up. I would not worry about it. It i a very small amount either way. No they won't throw it out because of an objection.

Why would they bother filing an objection over such a small amount? I am IRATE!!! They have been getting paid this whole time..........so what happens now? Are they going to go to court and plead their case that it should not be in the plan? I mean it is a 60% repayment plan. Do I need to get a statement from the CA showing they have been getting paid? Is it normal for creditors to object? I am scared to death, if this one creditor that I owe pennies to is going to object, then what are the ones that I really owe a lot of money to going to do????
Also, I think $128 was the original balance owed. I have been paying that CA for a long time because they had like 6 different accounts from various places.

Sass,like I said your attorney has filed and he would be the one to handle any details such as this.

Ok cajun.......I guess I just don't understand why they would bother objecting..I will keep trying to call my attorney.

Thanks frogpatch and cajun for your help. frogpatch, did you do a chapter 13?

Ok here is an update. I spoke to the collection agency and they verified that the original amount was $128 and $125 has been paid to date. But the creditor didn't really object my bankruptcy. I finally got ahold of my attorney's office. What I got in the mail was an objection to the creditor's claim, since we only owe them $3 and they filed a claim for $128. So my attorney objected for me. I was worried for nothing. But now I suppose this creditor is going to show up in court and try to fight us............the CA is supposed to contact them today or tomorrow and tell them whats up.........thanks guys for helping me out. You are both awesome. :)

Sassn...worry is only bad for your soul, let your attorney handle it. Attorneys are not always available at a moments notice and take a while to get back to you which really sucks and makes you more anxious. Good luck with your bk. Pauli's Girl

Sassnlucy....

I really wouldnt worry about the creditors meeting. All will be fine. Its only a formality. The only creditor I have ever heard of showing up is Sears. It was over an air conditioner the person bought with their sears charge just before filing.

Thanks so much PaulisGirl and Roadwarrior. I try so hard not to worry but I always think up the worst case scenario and am sure that it will happen to me!!! Luckily, my attorney's paralegal was in and she was able to tell me what was going on. Thank goodness I don't have anything with Sears so I don't have to worry about them. Thanks again :)

I did a 7 and a 13 about ten years ago. The 13 failed after a short while. The laws were more relaxed then. The 13 is still on my report but the 7 is gone. I had 35000 in credit card debt back then. No regrets. It was the only way out.

The only 2 that objected in our bankruptcy was Sears over a microwave and Ford Motor Credit. They both showed up. None of the other creditors bothered to show up. We had to reaffirm with both Sears and FMC.

hang in there sassnlucy,

its going to be fine. remember, when all of this is over, we all have to get toghter somehow and have a "to heli with pdl's,etc." party.

take care,
james

I love you guys for answering me. frogpatch, I am going to have them take the payment out of my check every month that way it won't fail. I know that if I don't have them do that I will miss a payment and get myself in trouble. We would have done 7 but I filed 7 in 2002. This is the first time my husband has ever filed.

finallydebtfree.....how long ago was it when you filed? What did the creditors say in court? I am scared about that......

Jamesscarlet.....thanks for the kind words! Send me a message and let me know how you are!!!

Sassnlucy, that is really a ridiculous amount to object over, I agree. When you have your meeting of creditors you will see it isn't as bad as you think. I guess I can say that, nobody showed up to mine. I don't think you have anything to worry about, it seems your attorney is on top of it. The laws have changed alot, and the new bankruptcy laws are not really there to help those who really need the assistance of bankruptcy. How long is your plan for? And you will probably also find that some creditors will not file a claim which means once you discharge your 13 they can no longer come after you for it. Good luck.

I hope that nobody shows up at mine. Yes, I am lucky...my attorney is right on top of things. I was just really panicked when I got that in the mail yesterday! My plan is for 36 months and it is a 60% plan. I am just hoping that everything else goes smoothly. I don't think a 60% plan is unreasonable.....thanks :)

No, when I filed it was only at 5%. Like I said, the new bankruptcy laws really changed things for people. Hopefully not all creditors will file a claim, which is what usually happens and that will decrease the plan for you.

Oh I didn't know that it would decrease the plan if they don't all file a claim!!!!! That could be even better news! :):):)

Yes, it should becaues the debt you are paying off will be lowered if creditors do not file a claim. I had about $15,000 in creditors' that did not file a claim.

Thanks for the info! I am going to keep my fingers crossed....I could use a couple thousand off my plan, heck even $1000 would help!

Good Luck Sass. I know it is so stressful going to court but it will be over before you know it. KYSIDE38

Does anyone know if student loans are included in a bankruptcy plan?

I don????????t think student loans can be discharged in bankruptcy filing. The only way to do this that I can possibly think of is to show financial hardship, like you are completely disabled and cannot work by any means.

I was just wondering because although I have a hard time with making ends meet that is really the one bill that I have a hard time keeping up with, I am going to just have to deal with it. Thanks

They can if you file a chapter 13 plan. When my attorney first did my papers, she didn't realize my loans were in deferrment and included them in the plan. I don't think they are dischargable in Chapter 7 though. I know how you feel, I dread the day my loans are no longer in deferrment.....

Sassn, I have deferred so many times it makes me feel like a loser(I'm not just hard times I know) but still I've got to do something, even if they could be included in a plan would be better than what I've got going now. Thanks Pauli'sGirl

Student loans can not be discharged through a chapter 7 or a chapter 13 because they are federal debt. When they are included in a chapter 13 plan you make payments on them through your plan, and once your complete the chapter 13 plan you will carry the balance with you and still owe on the student loans.

I don't mind paying it I just don't want to be garnished for late payments. Any other ideas?

Have you tried contacting Direct Loans to consolidate them, that is a possibility, when I went into my chapter 13 my loans were in default and they were garnishing my paycheck. Once I entered into the chapter 13 plan, the garnishments stopped and they are being paied through the plan. I have already started the paperwork with Direct Loans to consolidate my loans.

Never heard of them, do you happen to have a # you could pm me?

Oh wait one more question what is the garnishment like, the amount of your payment or 25% of your check or what? Pauli'sGirl

I may be wrong but I think it depends on your state's laws regarding garnishment.....but that may not be true in regards to federal student loan debt........

When I went into default and they garnished my check (they garnished 3 before my bk), the garnishment was actually less than the monthly payment plan.

less than your monthly payment plan, if that is the truth (and I believe you) garnishment doesn't sound too scary but I still don't want to have it happen. Gotta deal with it.

Yes, it was lower, the big drawback is your credit rating will take a humongous hit because the student loans will show up as default. And I completely understand and empathize with your situaiton, been there and done that. :(

I'll make it we all do one way or another, thanks :)