Definition - What does Bankruptcy Objection mean?
A bankruptcy objection happens when a creditor does not accept the validity of a proposed plan by the debtor to forego payment of his debt in light of filing for bankruptcy. It is up to each creditor to object to a discharge of debt owed to them by an individual debtor. There are several reasons why a creditor can object to a bankruptcy discharge or even the Trustee's Final Report. The judge in the bankruptcy case would then rule on whether or not the creditor is justified in their objection.
Justipedia explains Bankruptcy Objection
An example of a valid objection by a creditor to a proposed discharge of debt occurs where the debtor escalated the debt directly before commencing with the bankruptcy. For a successful objection, it is vital to show that the items for which credit was given were not necessary for everyday living. If the immediate debts taken on by a debtor prior to the bankruptcy were spent on everyday essentials, then the creditor does not usually object to these. Cash loans over a set amount (usually $900) will be considered something that must be repaid if the cash was borrowed within the 70 day period previous to the filing of bankruptcy.
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