ap threat advise

[reynold975]

We filed chapter 7 and had our 341 Monday. We received a threat letter from a cc company threating an ap if we don't pay them for all the charges from the last 6 months. I had some charges for household and business expense that were charged in the last 4-6 months about $2,800 charges and 1,400 check advance. But only had about $200 charges in the 90 days prior to filing. My attorny is telling me that I have to pay them back because it totalled over $1,000 in the 6 month prior to filing no matter what I charged because it wasn't all household items. She wants us to make payment arrangement to the c/c, but they haven't even filed anyhthing yet. I know she is an attorney but I think she is wrong about this. I know TN has a 70/90 rule and the luxury purchase rule. But I've never heard of this.
Thanks,

[HHM]

This is a tough one...general rule is at least make the CC company file the AP...but if they do, that could increase the amount needed to settle. The main problem is the $1,400 cash advance and the business charges, all the creditor need show is that you were insolvent at the time you made the charges and therefore could not reasonably believe you could pay the debt. However, since the bulk of the charges are outside the 90 days, probably make them file the AP, and then settle. (cost too much to defend and it sounds like your attorney has not the guts or knowledge for this sort of thing).

[reynold975]

there was very little business debt. Maybe 200 at most. They want us to pay back everything for the last 6 months prior to filing. $4,200 in a payment plan or pay $3,000 in full. I told my attorney that I wanted to wait. She said they would file an ap. I guess we will see.

[debee]

The creditor can file an AP for charges outside the luxury/70/90 window. It's just harder to win.

In addition to the issues HHM already pointed out, they're also going to look at your usage/payment behavior.

If you generated a cluster of charges/advances within a two week period six months ago and then stopped paying your card (absent some reason such as job loss, medical catastrophe, etc), it doesn't look so good.

If you made your monthly payments all the way through, it looks better.