Need Help !! Adversary Proceeding Pre-Trial Next Week !

[jblu83]

Over 6 months from the charges they are fighting for and none of them all that excessive single line itemwise. Did you make any payments on these charges before you filed?

Account was opened from 2004 and multiple payments were made on the account.... My last payment submitted was the end of Oct. 2009

[HHM]

Okay, but what HAPPENED that you couldn't make a payment after that?

Time is only ONE factor in the defense to these claims. 8 months is a good window, but unless you have an explanation as to WHY you stopped paying when you did, your defense is not that strong.

As for settlement, it really just depends. Since the case is borderline on both sides, maybe a lump sum of 25% of the balance (assuming you could pay that), or a little higher with monthly payments.

[despritfreya]

How much do you think I should try to settle for, if this is indeed my best course of options ??? Can they garnish a Federal Disability Pension ?????

Ah, 2 issues here.

1st, you may be judgment proof. Federal Disability (SS/VA) is exempt. I do believe that a Federal pension money sitting in the bank (must be traceable) is also exempt but you need to look into that. If all is exempt and that is all you have, you are judgment proof and probably did not need a bk. Simply tossing in the towel and letting AMEX get a judgment may be fine as the judgment might not be worth the paper it is printed on.

2nd, I usually throw out an opening number of $3K asserting that we are doing nothing more than offering the initial cost of legal fees before a bunch of time is spent on discovery. If you cannot get the creditor to go away based on this, the settlement, at least in my experience, ends up at about 50 to 60% of the claim with payments over 3 years and no interest. The other factor is the attorney who represents the debtor. I think (but cannot verify this) the Firm I work for is a bit more successful in settling or simply making it go away as the institutional creditors know that we routinely handle 523 matters. They also know that if the matter doesn’t go away we will put up a very expensive fight, hauling the creditor in for depositions. The problem with litigating is that you win some and you lose some. It all depends upon the facts of each case and, as you proceed further into those facts through discovery the real picture comes out. Sometimes the creditor is barking up the wrong tree but other times the creditor has a smoking gun that you can’t defend.

Des

[jblu83]

Ah, 2 issues here.

1st, you may be judgment proof. Federal Disability (SS/VA) is exempt. I do believe that a Federal pension money sitting in the bank (must be traceable) is also exempt but you need to look into that. If all is exempt and that is all you have, you are judgment proof and probably did not need a bk. Simply tossing in the towel and letting AMEX get a judgment may be fine as the judgment might not be worth the paper it is printed on.

2nd, I usually throw out an opening number of $3K asserting that we are doing nothing more than offering the initial cost of legal fees before a bunch of time is spent on discovery. If you cannot get the creditor to go away based on this, the settlement, at least in my experience, ends up at about 50 to 60% of the claim with payments over 3 years and no interest. The other factor is the attorney who represents the debtor. I think (but cannot verify this) the Firm I work for is a bit more successful in settling or simply making it go away as the institutional creditors know that we routinely handle 523 matters. They also know that if the matter doesn’t go away we will put up a very expensive fight, hauling the creditor in for depositions. The problem with litigating is that you win some and you lose some. It all depends upon the facts of each case and, as you proceed further into those facts through discovery the real picture comes out. Sometimes the creditor is barking up the wrong tree but other times the creditor has a smoking gun that you can’t defend.

Des

Thanks Des.... That is what I was told by my atty as well; that my Federal Disability payments can not be garnished.