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  1. #1

    Default Can You Tell a Creditor, If You Sue Me I'll File Bankruptcy

    My question involves bankruptcy in the state of: CA

    Is it illegal to tell a creditor that if they sue you it might force you into Bankruptcy. What if you do file, but it is over a year after they filed the complaint?

    I told one I was trying to pay them and if they filed a complaint, it might force me into bankruptcy. They said if you don't pay us we will sue you. I wasn't able to pay them, they filed a complaint. I let it go throught the system for a while and filed C7 about 14 months after the filed their complaint.

    Is there anything illigal in what I did?

  2. #2
    Join Date
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    Default Re: Can You Tell a Creditor, If You Sue Me I'll File Bankruptcy

    Did the debt end up being discharged in the bankruptcy?

  3. #3

    Default Re: Can You Tell a Creditor, If You Sue Me I'll File Bankruptcy

    Quote Quoting Betty3
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    Did the debt end up being discharged in the bankruptcy?

    The BK is not done yet. One of the creditors filed an Adversary Proceeding

    Is it illegal to threaten bankruptcy?

  4. #4
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    Default Re: Can You Tell a Creditor, If You Sue Me I'll File Bankruptcy

    Why would it be illegal?

  5. #5
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    Default Re: Can You Tell a Creditor, If You Sue Me I'll File Bankruptcy

    Quote Quoting BillBax
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    Is it illegal to threaten bankruptcy?
    No (not generally) but why do you ask? Is there more to the story?

  6. #6
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    Default Re: Can You Tell a Creditor, If You Sue Me I'll File Bankruptcy

    You would be surprised how many creditors are told "If you pursue this, I will just file bankruptcy."

  7. #7

    Default Re: Can You Tell a Creditor, If You Sue Me I'll File Bankruptcy

    Quote Quoting Betty3
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    No (not generally) but why do you ask? Is there more to the story?
    In a Complaint Objecting To Discharge, the plaintiff in their Statement of Facts is saying " the Defendants have failed and refused to make one single payment on the loan. Defendants used the constant threat to file bankruptcy to frustrate attempts to recover the amounts lawfully owed"

    The true facts:

    the loan was made to my C Corp and I personally guaranteed it.

    The loan was for $30,000 and payments of over $20,000 were made . Proof by Canceled checks and letter from Plaintiff stating $12,000 owed including late charges

  8. #8
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    Default Re: Can You Tell a Creditor, If You Sue Me I'll File Bankruptcy

    =BillBax;297234]In a Complaint Objecting To Discharge, the plaintiff in their Statement of Facts is saying " the Defendants have failed and refused to make one single payment on the loan. Defendants used the constant threat to file bankruptcy to frustrate attempts to recover the amounts lawfully owed"
    well, by your statements, at least part of the claim is untrue. That should obviously be brought to the trustees attention.

    as to the last part; well, depending on what you said to them, they could be correct. If you simply said you were going to file BK and they stopped collection due to that, then it is on them for failing to take available action. Now, if you made some additional agreements you aren't disclosing here, that may give them the right to object to discharging the debt.

    It is a poor collections company that believes the threat. Most simply state that until such time your do file BK, they are going to continue to take available actions.

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