Once you file for a Chapter 7 bankruptcy, the trustee will review your debts, liquidate your assets, and you can head to court to have your debts discharged. Unfortunately, an objection from a creditor or the trustee could cause problems for you. If you are filing for Chapter 7, here is what you need to know about objections.
Why Are Objections Filed?
An objection is basically a dispute about one or more debts that you have listed in your bankruptcy. All of your creditors will be notified when you file for bankruptcy. The creditors have a chance to accept the discharge of their debts or object.
The objection can be filed because a creditor disputes the amount that is owed. The creditor can also object to the discharge of the debt.
If a trustee files an objection, it is usually because he or she discovered that there was some discrepancy in your petition or financial records. For instance, if you did not list all of your assets, the trustee could be led to believe that you are attempting to hide some of them and object to the discharge.
Can You Dispute an Objection?
When the court receives an objection, you will receive notification of it. The notice will state who objected and the reasoning for the objection. You will have a certain period of time to respond to the notice or the court could decide in favor of the objector.
If the objection is regarding the accuracy of the financial records that were submitted to the trustee, you can contact him or her directly and attempt to resolve the issue. For instance, you might need to provide additional financial information to the trustee to give a more accurate depiction of your income.
If a creditor objects, you will need to explain to the court exactly why you do not owe the debt or that the claims made by the creditor are untrue. For instance, if the creditor claims the amount owed is greater than cited on your bankruptcy filing, you can provide receipts, statements, or any other financial records you have that prove otherwise.
Objections can be filed for reasons. Consult with your bankruptcy attorney to learn more about why an objection can be possibly filed and what you can do to deal with the situation. By preparing ahead of time, you can likely avoid an objection and keep your filing on track. Contact a company like The Law Office of Colon & Associates PLLC to learn more.