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Creditors object to man's bankruptcy after they lose vehicles

In order to get a difficult task taken care of, Colorado residents understand that it takes time. There is often a process that must be followed, during which smaller tasks are completed along the way to the larger goal. This is certainly true in Chapter 7 bankruptcy, which allows a person to obtain the difficult task of debt relief, but only after the person follows a certain process set out in the bankruptcy laws.

One of the essential steps along the way is to deal with claims of creditors against the person. While filing for Chapter 7 will stop creditor harassment, creditors still have a means of objecting to the discharge of their debt in the debtor's Chapter 7 proceeding.

For instance, in one man's Chapter 7 proceeding, some creditors may be objecting after they are disappointed over the man's handling of their precious assets and money. The man owned a vehicle restoration business, and in that capacity, he took several specialty and custom vehicles in from customers for purposes of repairing the vehicles. However, the customers became upset after their vehicles were never restored, and they lost out on up-front payments of cash they made to the man. In the man's bankruptcy proceeding, some are now writing letters opposing the bankruptcy on the basis that the man stole their assets.

Typically, creditors have a right to object to a discharge of their debt. However, there are only certain grounds that might prevent a discharge of debt in an objection, such as if there has been fraud or destruction of records. If the issue is not taken care of, it could go to trial, with the objecting party having the burden of proving the facts regarding his or her objection.

Ultimately, the objection right of creditors is just another part of the bankruptcy process that must be followed before a debt discharge. After these steps are complied with, most debtors will receive a discharge of their eligible debts.

Source: Myrtle Beach Online, "Classic car enthusiasts oppose Myrtle Beach area businessman's bankruptcy attempt," David Wren, Dec. 28, 2013

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