Will My Lenders Be Able To Prevent Me From Filing Bankruptcy?

Too often in life there are things that come up that you want to do, but something or someone stands in your way. For instance, you might have plans to go to the beach or on an outdoor picnic, and then it begins to rain. Or, you may have made arrangements for a sitter to come over and watch the kids so you can have a date night, then the flu bug hits your house. The point of these stories is to illustrate the point that we cannot control a lot of things in our lives. But when what you need to do will help you get out of financial trouble, it is more important than ever to make sure nothing prevents you from taking the steps you need to relieve financial pressure.

A lot of people who need to file bankruptcy wonder how it works and wonder if they will even be able to file a case. These concerns can lead to other questions, such as whether a creditor can prevent you from filing your case. While your lenders cannot stop you from filing a petition, they can take other action in your case that you might find less than desirable. Some of these things include:

•      In a Chapter 13 setting your lenders can object to your proposed plan of repayment of their debt. If you are unable to reach an agreement you can live with, the Court might decline to confirm your Chapter 13 Plan. Or, if the agreement throws off the numbers and makes the Chapter 13 Plan payment out of reach, the Trustee might advise the Court that your plan is not feasible. This is not necessarily the end of your case, but some adjustments will need to be made in order to make your plan work.

•      In either a Chapter 7 or a Chapter 13, a lender can object to the discharge of their debt. Simply put this means the lender will ask the Court to enter an order that their particular debt remains due after the bankruptcy case is over. You do have defenses to this type of effort, and many times satisfactory results can be obtained. The key is to not get discouraged and throw in the towel on your case.

We understand how difficult life can be when you don’t make enough money to pay all of your bills. So, things only become more stressful if you have to face adversity at every turn. Let us help by taking on the burden of dealing with your creditors, and coming up with solutions that fit your budget.

For more information about bankruptcy cases and what rights creditors have in your case, call us today or reach us online at www.law-ri.com.