Can Unsecured Creditors Object to My Chapter 13 Bankruptcy?

Despite common knowledge, Unsecured Creditor may have the right to object to the Chapter 13 plan that has been set up by you and presented to the court.   A Creditor that objects to the plan may object because he feels that the plan is insufficient in that he as a creditor will not get paid during the CH 13 time period.    

Often objections by a creditor to a Chapter 13 plan derail the objectives of the person filling. Don’t let a Creditors objection to your Chapter 13 plan derail your strategic objectives in a chapter 13.  It is important that you know your rights here.  Contact trusted and knowledgeable bankruptcy attorneys at DOWNTOWN LA LAW for a Free Consultation regarding your case.

Many creditors feel that a Chapter 13 filing will eventually lead to a Ch 7 filing in which their credit in the individual will be eliminated.  Thus many creditors can and often do object to a Chapter 13 and or the structure that the person filing hope to establish with agreement from the bankruptcy court.  Below are some common objections that a Creditor can make to derail your Chapter 13 filing.

(1) Bad Faith:  The Plan for Ch 13 was no provided to the Court In good Faith.

This is likely the most common objection that is raised by creditors.  Courts here will look at your plan and determine whether they are honest in their final strategic goal of getting the individual filing back up on his two feet after the Chapter 13 timeline is over.  

There are no set rules or a definition in bankruptcy courts for Good Faith or Honesty.  It is a case by case analysis.  Here it is important that the filling be provided in a way so as to defeat this objection.  It is important that you know the laws and the interplay between the laws of Bankruptcy and the court decisions regarding this objection. 

(2) Chapter 13 Plan IS NOT in the best interest of Creditors. 

(3) Unfeasible:   The plan will not be able to pay back the creditor in full 

(4) Discrimination Defense:  The Plan is unfairly Discriminatory

Creditor’s ca objects to the class of creditors that they have been placed into.  Ch 13 requires the filing of classes of creditors based on different variables.  Different classes are paid at different times and at different rates in the Ch 13 process.  Creditors often object to the class that they have been allotted.

To be able to fully defense your rights against objections by creditor you need to have a complete knowledge and understandings the law.  At Downtown LA LAW we have a staff of knowledgeable Bankruptcy attorneys that will guide you through the process and help you defend your rights.  \For a free consultation call (855) DTLALAW.