How to Dispute Debts in Bankruptcy

It is important for the debtor to submit a written objection to any creditor claim in a bankruptcy proceeding under any chapter because if the claim is not disputed the U.S. trustee or the court may elect to “allow” or to pay the claim.  The form of the debtor’s written dispute debt/objection to the creditor’s claim may be as simple as a letter to the trustee or as formal as a motion addressed to the court naming the creditor and the claim amount and formally denying or objecting to responsibility for payment of the claimed amount and requesting a court hearing on the issue. Usually in response to the dispute debt letter or motion objecting to the creditor claim a hearing on the claim would be scheduled where the creditor would be required to appear and prove that the debtor is responsible for payment of the claimed amount.  The debtor would in turn be able to produce evidence supporting his claim the he is not responsible for payment of the claimed amount.  It is a possibility that the creditor will never even show up at the hearing to provide evidence supporting his claim, but on the other hand, if the debtor fails to take the step of formally objecting to the creditor claim in writing either to the court or the trustee then that debtors claim will simply be paid without any further inquiry.  The debtor’s job is to remain vigilant and to protect his interests in any way open to him because most creditors know the bankruptcy system too and they will try to exploit it to their benefit even if that involves puffing out existing debts.  

Disputing Creditor Proof of Credit Card Debt

A credit card creditor must provide proof of a debt by way of a summary statement including:

1. the debtor’s name and account number
2. the amount of the debt
3. in a reliable business record format and;
4. the account must break down the debt in terms of principle, interest, and penalty or collection related fees. 

If the creditor does not provide evidence of the claim meeting these requirements then the debtor may refute the entire claim.  If the current creditor is not the original creditor then the secondary creditor must provide proof of ownership of debt claim in addition the required proof of the debt.

Getting Legal Help

If you or a member of your family has been forced to file for federal bankruptcy protection and needs to have experienced guidance in order to dispute debt claims of creditors then it would be important to contact a bankruptcy lawyer.