Please correct me if I'm incorrect on any of the facts, but here's my understanding of what's happened so far: You filed an Objection to the auto finance company's Proof of Claim seeking to cram down/reduce the principal balance owed on the auto loan. However, since you actually owned the vehicle for less than 910 days on the date of filing, the vehicle is not eligible to be crammed down. The auto finance company then responded with something along these lines, along with a boilerplate provision requesting attorney's fees.
One simple solution might be to simply withdraw your Objection. If the Objection is withdrawn and there's no hearing, it's unlikely that attorney's fees would be awarded to the auto finance company.
You should be able to simply file a Notice of Withdrawal of your Objection to Claim. It doesn't look like there's any specific Local Form for this, but here's an example of the type of Notice of Withdrawal a Debtor would file: http://www.motorsliquidationdocket.com/pdflib/4891_50026.pdf
When you file your Notice of Withdrawal, you should ask the clerk whether the hearing on your Objection will automatically be canceled upon filing your Notice, and if not, what you need to do to have the hearing canceled. Good luck with your case!
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