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Handling creditor objections

During the Chapter 7 case, it is not uncommon for me to receive a letter from a creditor threatening to file an objection to discharge of the debt owed to the creditor. In general, these letters are sent by one law firm which represents many of the large credit card companies.

Inevitably, the letter complains that my client made numerous charges on the credit card within some period prior to the filing of the case, and insists that my client offer some money to settle the matter.

In my experience, 9 out of 10 of these demands are completely frivolous.

The only charges that are deemed non-dischargeable if made in close proximity to the filing of the case are cash advances and luxury purchases. Charges for living expenses and other necessities are allowed.

After receiving the letter, I always consult with the client to obtain the true facts about the charges. Then, I draft an aggressive response to the creditor’s attorneys.

I have found that after receiving my letter, the creditor will back down, and will rarely follow through on the threatened objection.

The creditor law firm is seeking a quick judgment against individuals who are not going to put up a fight. Once it is clear to the creditor that the client’s interests will be vigorously defended, the creditor is no longer interested in pursuing the matter.

Peter Berk