CapOne Disputing Dischargibility

[JoeKing]

Recv'd notice of hearing today indicating CapOne is disputing the dischargibility of our debt. This the credit card I used to pay for my property tax last year to save my house. Then, I realized was notgogint to get any help from Homecomings Financial with our mortgage, which triggered doubt of abuse. I filed in 3/10/2009, 341 4/22/09 and 60 day 6/22/09. I was hoping CapOne was bluffing but it's on to the court hearing. Has anyone fight these charges and win for the debt to be discharged?

CapOne argued that too many charges for a short period of time, when I carried low balance for a long time until 10/08. Help anyone...

I am trying to decide to settle it or fight it. what are my chances?

CapOne offered $2500 settlement of $12K debt. I almost took it but I was not sure if it was just a threat.

If I fight, what documentations would I need to prove my intention pay was true until around 2/09. I realized I cannot live paying Peter from borrowed money from Paul. You know what I mean. Thanks for your help!

[JRScott]

They might win on the property tax charge and make that portion undischargeable but if the rest is normal everday expenses I don't see them winning on that.

Have you talked to your lawyer yet?

If you don't have a lawyer now's the time to probably get one.

[lrprn]

If I fight, what documentations would I need to prove my intention pay was true until around 2/09.

You need to be able to prove that when you made the charges, you were financially capable of paying the charges back. Since you mention using the card to save your house, it sounds like you were in financial trouble even then. That could make proving you could pay back what you charged more difficult.

How close were the charges that CapOne is challenging made to when you filed in March? What's the dollar value they are challenging?

Did you file with a lawyer or did you file pro se (without a lawyer)? If you filed with a lawyer, then you need to work with him/her to decide what's best to do in your situation. If you filed pro se, then you'll have to decide on your own what's best.

CapOne offered $2500 settlement of $12K debt. I almost took it but I was not sure if it was just a threat.

I asume the offer come before you filed, right? Now that you filed, your automatic stay interferes with accepting this offer now. Again, if you filed with a lawyer, this is something you need to work out with him/her. If you filed on your own, then it might be worth paying for a half hour of a good bk lawyer's time to sort out what to do here.

[JoeKing]

They might win on the property tax charge and make that portion undischargeable but if the rest is normal everday expenses I don't see them winning on that.

Have you talked to your lawyer yet?

If you don't have a lawyer now's the time to probably get one.

My lawyer is aware that CapOne may file a hearing, he also thought maybe they are just bluffing. I am not sure if they coud be bluffing all the way to hearing in 09/09. Should I take my chances?

My intention is to pay back the money I borrowed when I used the card to pay for my Property Tax $11K. IF precedence states, using credit card to pay for property tax are no dischargeable. Then, I should try to settle it and move on with our lives with my wife and 4 kids. It has been a rough period.

[JoeKing]

You need to be able to prove that when you made the charges, you were financially capable of paying the charges back. Since you mention using the card to save your house, it sounds like you were in financial trouble even then. That could make proving you could pay back what you charged more difficult.

How close were the charges that CapOne is challenging made to when you filed in March? What's the dollar value they are challenging?

Did you file with a lawyer or did you file pro se (without a lawyer)? If you filed with a lawyer, then you need to work with him/her to decide what's best to do in your situation. If you filed pro se, then you'll have to decide on your own what's best.

I asume the offer come before you filed, right? Now that you filed, your automatic stay interferes with accepting this offer now. Again, if you filed with a lawyer, this is something you need to work out with him/her. If you filed on your own, then it might be worth paying for a half hour of a good bk lawyer's time to sort out what to do here.

I paid my property tax in 10/08 $11K both installments because I was waiting whether or not Homecomings Financial would modify my loan. This is why I ended up paying for both property tax installments. 9 Mos of waiting for loan modifications, we cannot afford it anymore 2/09 decided to file BK and give up our house.

My lawyer is aware about possibility for CapOne objection. I need to talk to him Monday whether or not I should settle. I can possibly make payments on a $2500 debt versus $12K. This offer was second offer after I filed on 3/09.

[eddiep]

did you continue to make payments on this card after you paid the property tax?
Does your lawyer think you can beat this?
What will your lawyer charge you to fight this?
What was your final straw in deciding to file for bk?

[dingdong]

When did they file the AP?

Was it before 6/22/09?

[JoeKing]

did you continue to make payments on this card after you paid the property tax?
Does your lawyer think you can beat this?
What will your lawyer charge you to fight this?
What was your final straw in deciding to file for bk?

Yes. I made 4 payments after paying the property tax in 10/08.

My lawyer said NO on property tax charges because taxes are ono-dischargeable. If and only if creditor pursues the lawsuit.

I am not sure if my lawyer will want to fight it. My gut feeling when this first came up with my lawyer is to setle.

We realize in February that we will not have enough money to keep our mortgage payment when it adjust to PI payment and to keep it current because my lender did not want to entertain any of my calls until I missedd the mortgag payment. I realize when I look at my kids, I am not a good example by showing credit happy inidividual. I needed to make a change. I work hard but I do not make enough money for our expenses. So, we need to step back to be able to continue to step forward on the right direction.

[JoeKing]

When did they file the AP?

Was it before 6/22/09?

It looks like the from the hearing notice that it was executed on 6/23/09. Do you think I may have a case by technicality of 60 day requirement after the 341?

I am assuming that objection and request for hearing was filed on 6/22/09, which would be the 60th day. Then, the Hearing notice was executed the next day 6/23/09.

How can I find out when AP was filed?

[keepmine]

I think I'd settle.

They'll argue that you couldn't discharge property taxes and by putting them on a cc you are trying to make a priority debt unsecured. They'll very like win.
A settlement of around20% is a good deal plus, you avoid more legal fees.

[JoeKing]

I think I'd settle.

They'll argue that you couldn't discharge property taxes and by putting them on a cc you are trying to make a priority debt unsecured. They'll very like win.
A settlement of around20% is a good deal plus, you avoid more legal fees.

Thanks. I am leaning towards settlement. I will talk to my lawyer Monday.

[dingdong]

It looks like the from the hearing notice that it was executed on 6/23/09. Do you think I may have a case by technicality of 60 day requirement after the 341?

I am assuming that objection and request for hearing was filed on 6/22/09, which would be the 60th day. Then, the Hearing notice was executed the next day 6/23/09.

How can I find out when AP was filed?

If they didn't file the AP by the 60 day time bar date, you may have recourse to fight the AP based on the claim not being timely.

Perhaps they filed , in a kind of bluff situation, urging you to settle?

Look on PACer, see when it says last day for creditor objections, and maybe your attorney can motion to have the claim dismissed based on it not being timely?

Maybe HHM will come along and clarify.

[shabam]

If I was in a similar position, I would settle. Hiring a lawyer to defend an AP can cost as much as the amount they want to settle, if not more.

[music12]

i would settle unless they missed the deadline of 6/22, in which case i'd fight over the timing and settle only if i lose.

[JoeKing]

Thanks. Everyone.