- Jurisdiction
- Wisconsin
Just over a year ago I took out a non secured debt consolidation loan. I made a few payments and then with COVID we got some deferrals. Since then my wife is no longer employed and we filed for Ch 7. Now the creditor wants proof of what I spent it on. I can find receipts of 75% but about 3K-4K I can't. Most of it was for consolidation of 2 large debts and some to make payments on other credit cards / bill to lower them. They said "In the unlikely event that the docunentary proof is not provided or the use of loan proceeds is materially different then provided on the application, we will have the option to exercise all legal rights as stated in the loan contract."
My question is what happens if I can't prove 100% where every dollar went. I also know I paid off a credit line a month or two after getting the loan but did I have to pay off debt I acquired prior to the loan?
My question is what happens if I can't prove 100% where every dollar went. I also know I paid off a credit line a month or two after getting the loan but did I have to pay off debt I acquired prior to the loan?