reafirm debt- told we had to

[kimsch72]

What is the name of your state? south carolina

we have filed a chapter 7 bankruptcy and we have a loan that was fairly new. the company refinanced a previous loan and gave us 1483.00 on top of what we previously owed. we needed this money to be able to pay bills and make ends meet. this loan is unsecured. the loan company keeps calling and says we have to reafirm this unsecured debt. we do not want to reafirm this debt but they keep saying they will contact my husbands commander (my husband is in the military) which can cause problems for him at work. our creditors meeting is in less than 2 weeks. do we have to reafirm this debt. will a judge reafirm an unsecured debt and can the creditor make us reafirm it if we do not want to. is there anything we can do or tell the creditors. it is a high interest loan. the creditors also told us we had to pay the payment amount which is 243.00 a month or else they will cause problems with my husbands work. they want the payment before the creditors meeting which is in 2 weeks. can you please help.

 

[ihatearizona]

You do NOT have to sign a reaffirmation agreement on unsecured debt - EVER!

Does this creditor know that they're violating the automatic stay with their constant collection calls? Is this the original creditor or a collection agency?

If you have any attorney, make him/her aware of this immediately so the calls can stop.

 

[kimsch72]

i have told them they were in violation of the stay but they continue to call and make threats about contacting my husbands commander. the person still contacting us is the original creditor. we have filed pro see is there anything we can do or say to them to make them stop. i have heard that judges rarely approve unsecured debts with anyone and especially high amounts of interest. do i tell the trustee at the 341 meeting that we do not want to reaffirm with them. the creditor says we have to cause it is a newer debt. what happens if they show up at the creditors meeting what kinds of things will they ask and what happens from there. can they dismiss the bankruptcy case. what can the creditor do to us. thanks for all your help....

 

[ihatearizona]

How long ago did you take out this loan? What type of loan (and with whom) is it?

As for their threats, you'll need to download the forms for contempt of court (usually on most BK sites). Check with the court clerk for the procedure for filing the paperwork with the BK court. Sue them!

 

[kimsch72]

the loan was with pioneer lending. it was a unsecured loan that was refinanced. the balance on the original loan amount was 3662.00 and the company gave us an additional amount of 1483.00 and refinanced the other into the balance. we needed the addiitional amount for loan payments, utitlites, medical prescriptions and food and to live on for the month. the original loan was taken out about 1 year ago and the refinanced amount was done at the end of october of this year. the military was taking out large sums of money for the last 5 months and we needed money to get caught up on bills and to live....

 

[ihatearizona]

I just thought I'd check to see if it was one of those payday loan co's. They're notorious for just the sort of action you were writing about.

Get the motion for contempt of court and file it.

 

[kimsch72]

thanks for replying so quickly. if these creditors show up at the 341 meeting what will happen, what questions do they ask. they said they were going to mail me the reaffirming agreement. do i have to file it with the court. we definantely do not want to reafirm this debt. can the court consider this debt too new and what would happen then. the money we got was to pay living expenses, and they refinanced the previous loan balance into it. so the amount of money we actually recieved a fewmonths ago was only $1483.00 I am just worried about what happens if they show up for the creditors meeting. i am going to file the contempt of court for this company

 

[ihatearizona]

thanks for replying so quickly. if these creditors show up at the 341 meeting what will happen, what questions do they ask. they said they were going to mail me the reaffirming agreement. do i have to file it with the court. we definantely do not want to reafirm this debt. can the court consider this debt too new and what would happen then. the money we got was to pay living expenses, and they refinanced the previous loan balance into it. so the amount of money we actually recieved a fewmonths ago was only $1483.00 I am just worried about what happens if they show up for the creditors meeting. i am going to file the contempt of court for this company

The creditors might show up at your 341 meeting to ask you questions about the debt. Even though they ask these questions, it does not mean that the debt would not be discharged. They would have to prove fraud of some sort in order to make the debt non-dischargeable.

Do NOT send them back the reaffirmation agreement.

Glad to hear you're filing the contempt charges. It should also help when it comes to the 341 meeting if they have pending contempt charges against them!

 

[kimsch72]

one more question for you. i called the bankruptcy court and they informed me i have to draft my own contempt of court paperwork and then come in and file it. i have searched online and could not find anything. do you know what needs to be included in the letter or if you know where there is any sample leters. thanks for all your help.

 

[ihatearizona]

Here's a link to the thread where I learned about all of this. There's a link for the contempt paperwork.

https://forum.freeadvice.com/showthread.php?t=196335&highlight=Arrow