why would an attorney request credit card statements in discovery for bankruptcy student loans

by Justen Howe 8 min read

What is the discovery process in a credit card lawsuit?

Sample Request for Documents Credit Card Discovery During the discovery process both the defendant and the plaintiff (creditor) will need to request documents from the opposing party for the case. The request for production of documents is the most common way of obtaining documents when dealing with a credit card lawsuit.

Can you file bankruptcy for student loans and credit cards?

Many people cite credit card debt as the main reason for filing for Chapter 7 or Chapter 13 bankruptcy. In Chapter 7 bankruptcy, credit card debt is usually discharged (wiped out). But there are a few situations when it is not discharged. In Chapter 13 Bankruptcy, credit card debt (like all nonpriority, unsecured debt) is paid off in part through the repayment plan.

What documents can the defendant request during the discovery phase?

Dec 17, 2015 · THE REASON LENDERS STOP SENDING THE STATEMENTS AFTER BANKRUPTCY. When someone files for Chapter 7 bankruptcy or Chapter 13 bankruptcy, there is an injunction called the automatic stay which goes into place immediately. The automatic stay is an injunction which says that no one can take any sort of action to collect a debt from the debtor.

Why doesn’t my credit card company send billing statements after bankruptcy?

Jun 16, 2020 · You can file bankruptcy even if your only debt is student loans. At the end of your bankruptcy case, the court will enter a general discharge order covering any credit card debt, medical bills, auto loans, judgments, etc. That same order will relieve you of your student loan debt if you prove undue hardship.

What circumstances does a person need to prove to have their student loans discharged through bankruptcy?

What circumstances do I need to prove to have my loan discharged in bankruptcy? You must declare Chapter 7 or Chapter 13 bankruptcy and demonstrate that repayment would impose undue hardship on you and your dependents. This must be decided in an adversary proceeding in bankruptcy court.

Can you file bankruptcy on Discover student loan?

But certain types of educational benefits, such as federal student loans, cannot be discharged in bankruptcy. ... Discharging private loans in bankruptcy may provide much-needed respite for debtors who can't meet their debt obligations, but bankruptcy has a lasting impact on an individual's finances and credit score.Jul 29, 2021

What does the bankruptcy trustee investigate?

For instance, Bankruptcy Rule 2004 authorizes the bankruptcy trustee to examine: the acts, conduct, property, liabilities or financial condition of the debtor. any matter which may affect the administration of the bankruptcy estate, or. any matter which may affect the debtor's right to a discharge.

Why are student loans not dischargeable in bankruptcy?

Section 523(a)(8) states that certain debts commonly referred to as “student loans” are not dischargeable in bankruptcy unless they “would impose an undue hardship on the debtor and the debtor's dependents.” (The “undue hardship” line of inquiry is itself complex and not relevant to these cases.)Aug 6, 2021

What is undue hardship for student loans?

‍To prove undue hardship, you'll likely need to pass the challenging Brunner Test by showing you can't maintain a minimal standard of living while repaying your student loan debt. Many borrowers who file bankruptcy wrongly assume that student loan debt is impossible to get rid of.Dec 4, 2021

What are some potential negative outcomes of filing for bankruptcy?

Bankruptcies are considered negative information on your credit report, and can affect how future lenders view you. Seeing a bankruptcy on your credit file may prompt creditors to decline extending you credit or to offer you higher interest rates and less favorable terms if they do decide to give you credit.

Do bankruptcy trustees check credit card statements?

Your bankruptcy trustee can ask for up to two years of bank statements. The trustee will look at your statements to verify your monthly payments to make sure they match the expenses you put on your bankruptcy forms.Dec 6, 2021

What questions will the trustee ask?

Questions the Trustee Can (and Will) AskDid you read and review your bankruptcy petition, including all of the schedules, before signing it?Was the information contained in the petition accurate when you signed it?Has anything changed since you signed the petition?Have you filed for bankruptcy before?More items...•Dec 31, 2020

Does the trustee monitor your bank account?

The trustee may conduct periodic reviews of your finances, including your business and personal bank accounts, to ensure you have sufficient cash to continue making payments as normal. The trustee also reviews your bank accounts to make sure you're not hiding assets from the court and your creditors.

Which of the following is the lowest priority of claims in bankruptcy?

General unsecured claimsGeneral unsecured claims have the lowest priority of all claims. After the bankruptcy estate pays administrative expenses, priority unsecured claims and secured claims, general unsecured creditors will receive a pro rata distribution of the remaining funds.

Do student loans go away after 7 years?

Do student loans go away after 7 years? Student loans don't go away after seven years. There is no program for loan forgiveness or cancellation after seven years. But if you recently checked your credit report and are wondering, "why did my student loans disappear?" The answer is that you have defaulted student loans.Jan 13, 2022

When did student loans become unforgivable?

By 1998, the seven-year period after which student loan debt could potentially be eliminated through bankruptcy proceedings was also eliminated with the passage of another set of Higher Education Amendments.