threat of adversary proceeding

[reynold975]

My husband received a letter forward through our attorney today. It was from a credit card company threating an adversary proceeding. It stated that we used our credit card between Oct 8 - Jan 19 for $2,800.00 (hardly any of it was in Jan) A cash advance of $1,400.00 and we were over the limit. Our 341 meeting is May 2. I know we weren't over the limit. It may be now that they have added all the late charges etc. to the card. He didn't charge hardly anything to the card in the 90 days prior to filling. That cash advance was 120 prior to filing. Our attorney is telling him to come in for a consultation. The CC company is asking that we pay $3,000.00 to settle.
under section 523

[reynold975]

They are threating action under section 523. Whatever that means

[despritfreya]

As I have said many times. My Firm’s policy is to ignore such letters. If the creditor really thinks it has a 523 action it must timely file a complaint. If it files the complaint then we will deal with it. Anything else is just a scare tactic.

523 refers to the bk code section that allows a creditor to seek a determination that its claim is non dischargeable for some reason such as fraud.

Des.

[reynold975]

Thank you so much for your reply. I thought that also. We only charged about $200.00 at most between all our cards in the 90 days prior to filing. We were never over the limit as they claimed.