loan dischargeable?

[kimsch72]

What is the name of your state? south carolina

we have our 341 meeting on friday am. i think a creditor may show up. we have a unsecured loan with a company. it was a fairly new loan. the company wants us to reafirm this loan but we do not want to. we had a prior loan with this company and we ended up refinancing the loan. the original loan amount was 3662.00. when we refinanced the loan we recieved 1489.00 and they refinanced the loan for a total of $5152.00. they keep calling us and asking for payment before the creditors meeting. we recieved the reaffirmation paperwork in the mail yesterday and they want us to reafirm this loan at 26.95%. we had used the 1489.00 to get caught up on bills and for money to live on ( groceries, utilitites ect.). since we only recieved 1489.00 is that the amount thay may not be discharged in the ch7. they have been threatening us if we dont reaffirm this loan that they will keep calling my husband at work and if we do not pay them what we are behind on they will call him at work. we are nervous that they will show up at the meeting. what kind of questions do the creditors usually ask. if you could help that would be great. thanks

 

[HomeGuru]

What is the name of your state? south carolina

we have our 341 meeting on friday am. i think a creditor may show up. we have a unsecured loan with a company. it was a fairly new loan. the company wants us to reafirm this loan but we do not want to. we had a prior loan with this company and we ended up refinancing the loan. the original loan amount was 3662.00. when we refinanced the loan we recieved 1489.00 and they refinanced the loan for a total of $5152.00. they keep calling us and asking for payment before the creditors meeting. we recieved the reaffirmation paperwork in the mail yesterday and they want us to reafirm this loan at 26.95%. we had used the 1489.00 to get caught up on bills and for money to live on ( groceries, utilitites ect.). since we only recieved 1489.00 is that the amount thay may not be discharged in the ch7. they have been threatening us if we dont reaffirm this loan that they will keep calling my husband at work and if we do not pay them what we are behind on they will call him at work. we are nervous that they will show up at the meeting. what kind of questions do the creditors usually ask. if you could help that would be great. thanks

**A: something does not make sense. Since you have already filed BK, this creditor cannot be contacting you to collect unless you contacted then first and they needed to repond. All collection activites must cease once you filed BK.

 

[kimsch72]

the loan company had contacted us. we had our home number changed so that the creditors would stop harrassing us. the creditor had called my husband at work and he was unable to talk to them so he gave them our new home number. the creditor requested money be sent to get the account up to date. i told them that we had filed a ch7 and that they should have recieved the paperwork from the bankruptcy court. they had told me they recieved the paperwork on the 18th dec. and it was noted in the computer. they had informed me that since the loan is new that we can not include this debt in the petition and that we had to reaffirm the debt. the creditor had called us on jan 4, 2005. i told them we did not want to reafirm this debt. she told me that we had to and that they were sending out the paperwork for us to sign and file with the court. i told the creditor they were in violation of the automatic stay and to quit calling us. the creditor had called me a few days later and asked if i had recieved the reaffirmation paperwork. i told them no we did not and not to call. a few days after that they called again and requested we send them money on the 15th to get the account caught up as we wee behind. i told them we filed ch7 and they said we know. we need a payment or else a letter would be sent to my husbands commander notifying him of the debt. ( husband is in the military). a few days later we yet recieved another phone call asking for money. we told them we did not have it and to quit calling. they told us that if we do not sign the reafirmation paperwork that they would show up a the creditors meeting. we are nervous as our meeting is 2 days away. what type of questions do they usually ask. the amount of money we recieved from them was 1489.00 which was used to try to get caught up on bills, groceries ect. the total amount they refinanced was 5152.00. could this whole debt be non dischargeable or would only the amount they actually gave us 1489.00. the interest rate they want us to reaffirm it with is outrageous 26.95%. if you could help us in this matter it would be greatly appreciated. we are so stressed about this meeting.

 

[kimsch72]

we are nervous about our creditors meeting if this creditor shows up. i hope someone can please help.

 

[Ladynred]

Do you have a lawyer ?? If so, you need to tell your lawyer about this loan company's blatant violation of the automatic stay in harrassing you for payments. If you do not have a lawyer, then you need to make sure that you tell the Trustee of this creditor's persistent phone calls and demands for money since you filed and their threats to try to force you to reaffirm. Sears got royally spanked for that type of thing and the BK court really frowns on that kind of action.

Calling your husband's commander is not going to do them any good, bankruptcy is not forbidden in the military, and they are in violation of the Federal bankruptcy law anyway !

They can NOT force you to reaffirm. Reaffirmation is VOLUNTARY and it must also be approved by the BK judge. Unless they can prove that you took out this loan with the INTENTION of filing for bankruptcy, intentionally defrauding them, they will not win in court even if they DO show up. I hope you included the ENTIRE loan amount in your papers.

IF they show up at your 341, they are going to have to mind their P's and Q's, they will not be allowed to grill you and get nasty. Whether or not their objection is heard isn't up to them.. its up the Trustee and the BK court.

If you can, make a list of every call and every threat from this loan company. Keep a log of every call and demand they make. I would not hesitate to slap them with a Motion for Contempt and a Request for Sanctions for violating the automatic stay as they have. Hit 'em where it hurts !!

 

[Luna1964]

Is this loan less than 90 days old? Have you made at least one or two payments on it to show that you tried to pay it?? It does look bad if you have a new loan or recent charges on a credit card less than 90 days old. It appears as Fraud on the EVE of Bankruptcy. They look for people who knowingly get money or charge with the knowledge that they are filing BK and wont be paying for it.

This is what I would do...

I'd write this creditor a letter...and include a copy of your petition that includes them. In the letter I would tell them to stop calling you as you have requested numerous times. Send it CERTIFIED so that they have to sign for it and acknowledge they recieved it.

Then Id write down to the best of your memory each and every time they called and what they said...the threats...and hopefully you got their name too.

Id go back to when you got that money and deposited it into your account...and show how you spent that money...on bills and necessities....no luxury items. Get copies of your bank statements that show this and the cancelled checks if there are any.

Then Id just go to the 341 Meeting with that in hand.

Theyre fools for violating the STAY....they would be even BIGGER fools to show up at the 341 and state their objection after they have violated the law.

Id show the Trustee your paperwork...the copy of the certified letter, the call logs, names, proof of deposit and how it was spent. As long as you can show that it was used for essentials HOPEFULLY you should be fine. Just get as much documentation as you can together to show how every penny you had went to essential bills. Hopefully you dont have any frivolous purhases.

If you had a lawyer they wouldnt be pushing you around like this. And the lawyer may have told you to wait 90 days after your last charge or getting a loan.

 

[Who's Liable?]

Also add in their the next time they call you at the very begining that you are taping the conversation and will provide it as evidence to the judge that they are in viokation of the law, and you hope to see them at the meeting because the judge might want to give them a piece of his mind...