Posts Tagged ‘object to a bankruptcy’

Can Creditors Object To A Bankruptcy?

Whether it is about the creditors or about the debtors, bankruptcy is not a welcome decision for either party. Still, if we look at the overall picture, it looks like a debt relief for debtor and a financial loss for the creditors. That is the reason the US bankruptcy laws have also provided certain options for the creditors to object to a bankruptcy. If you are a creditor and you think you are going to be in loss if the debtor is granted bankruptcy and the debts eventually get discharged. However, you will have to convince the court with a valid reason. Just saying that the debtor is not making the payments to you intentionally is not going to do any good. The court requires you to provide better reasons. Following is a brief rundown on it.

Attend The Meeting Of Creditors

As per section 341, when a bankruptcy petition is filed, the court assigns a date for meeting of creditors. The debtor and a bankruptcy trustee also join this meeting. In this meeting, the trustee and creditors get an opportunity to ask questions regarding the financial position of the debtor. All the questions must be answered by the debtor under penalty of perjury and under oath. After this meeting, you will be in a better position to decide whether you have any ground to object to a bankruptcy.

Look Out For Your Options Under The Section 523

The US laws have specified a detailed list of the grounds, which can be used to file an objection against a bankruptcy filing by a debtor. You can get this detailed list under Section 523 of the bankruptcy code. For example, a possible ground is that the debtor had already decided to file for bankruptcy and still borrowed money from you. Such activities are legally considered as fraud, especially if the money was borrowed within ninety days prior to filing bankruptcy. You will have to file an adversary proceeding to object debt discharge under Section 523. You will have to clearly mention in your appeal that which specific sub section of this section you think has been violated by the debtor.

You may also find some grounds under section 707 to object to a bankruptcy. Under this section, the creditors get the right to file their objection alleging that the debtor is misusing the provisions of chapter 7 bankruptcy. Such cases are referred to as the cases of abuse of chapter 7.


Custom Search
Bankruptcy

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Bankruptcy
Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?