AP filed...what to do

[clunk]

So were 3 days out from completing our 60 days and wouldn't you know it...AP was filed due to money spent 60 days prior to filing...the amount contested its $2400. The firm filing on behalf of the cc sent a letter following our 341, letting us know that they would file an AP unless we settled for $2k, we offered $1k, they never responded. Fast forward to now...AP filed, i contacted the lawyer who advised we offer $1500, which we gave him the go ahead. What should i expect, will thus gold up the discharge, or since its a separate case, does it factor in? Should i just relax until my 60 day window closes? What should be my next step, what's the worst case scenario?

[AngelinaCatHub]

The worse thing of course, is it goes to trial. It is a Federal Court trial, but usually you will have the ability to compromise with this. Probably a hearing first in which you could simply say to the Judge, you have no money or why would you be in bankruptcy. That you did offer a compromise but the Plaintiff did not respond (that will go heavy on them). Tell the Judge you can only afford 10 dollars a month to 1500 dollar balance. This could avoid the trouble, yet fix the jerk that is pushing this AP. Even if you plead guilty, this will ONLY affect the single creditor. Then they get a Judgment but still how can they cause to collect? You are bankrupted. You will probably get your discharge but not a close pending this outcome of this single creditor. 'Hub

[justbroke]

As my friend 'Hub mentions, this will not affect your general discharge; it only affects that specific creditor. Hopefully they take your offer and the AP is closed as settled. Otherwise, you could be looking at the entire $2,400 plus interest, penalties, court costs, and attorney fees.

[clunk]

I have no desire to fight this, as i did spend three money, and its going to cost far more to fight it. Should i personally contact the attny representing the cc to make sure they have received my offers? If it gets closer to the summons deadline, should i just post the entire amount?

[justbroke]

You are represented by counsel and you should only contact your own attorney. If you are not seeing movement on your side, you may want to apply a little more pressure on your attorney for action. Please be aware, that this AP may cause an increase in fees for your attorney.

[clunk]

Please be aware, that this AP may cause an increase in fees for your attorney.

That is my concern, and why i had thought about contacting the other firm.

[justbroke]

Do not contact the other firm. Your attorney could potentially dump you for that reason. They are there to represent you. First, seek out your attorney and you may also inquire as to any additional fees.

[clunk]

So a quick update...our 60 day window closed and there was only the one claim. Today we received a response to our offer. The other firm is willing to settle for $2000 or20/$100 payments. At this point my wife and I have decided that the $2k Is our penance or peace of mind to put this behind us. I emailed the signed copies to the cc's firm and cc'd our attorney. Hopefully we picked the best option, but i guess only time will tell

[bcohen]

As long as the settlement agreement explicitly says that no interest is being charged, you did ok. You basically got $400 for free, and get to repay the $2k over a period of almost 2 years at 0% APR.

[justbroke]

This is a good deal if there is no interest or other costs (attorney, court, etc).

[clunk]

No additional fees, and it clearly stipulates both parties are responsible for their own attorneys fees. It appears that its a straight $2k payment or 20 months of $100 payments. My only concern is that it says that the plan commences on December 1st, and since i didn't receive the letter till yesterday, am i already late? I can't imagine i am, but just want to make sure and cover all my bases.

[AngelinaCatHub]

So a quick update...our 60 day window closed and there was only the one claim. Today we received a response to our offer. The other firm is willing to settle for $2000 or20/$100 payments. At this point my wife and I have decided that the $2k Is our penance or peace of mind to put this behind us. I emailed the signed copies to the cc's firm and cc'd our attorney. Hopefully we picked the best option, but i guess only time will tell

Clap, Clap, Clap!! Your wife is a wise person as you are. Peace of mind is what BK (new start) is all about. You did the right thing for sure. The very best to you. 'Hub

[sailing2013]

If you don't mind me asking, Clunk, what were the purchases for? Every day items or "luxury"?

Regardless, glad you were able to settle and move on with your life!

[clunk]

It was used for day to day purchases including restaraunts, gas, groceries, hotels,ect. It was a cc that gave air miles so we made a habit of putting everything on it and then paying it back. But with that we typically carried a 50% balance on it. We kept using it until we filed(we unlike others did not pre plan our bk, it was more in the moment). I probably would have pushed back more but there were several transactions in the statements(which by the way your cc statements will become exhibits a-whatever) that could be construed as luxurious or extravagant. Truth be told almost all of the seperate transactions were under $100. Short answer, long....hopefully that answered your question.

[sailing2013]

Thanks for sharing! I appreciate it. As I mentioned, I am considering filing this summer, and just used my Omaha card for $4.5K purchases last month; and am worried about an AP from them. Thankfully, it will be 6+ months when I file from when I used the card, and I am still making payments. Cheers!