Objection from Chase

[Rick9972]

Chase has sent a letter to my Attorney saying they are considering filing a complaint. They are complaining about a $700 charge for taxes back in April.

Lawyer does not think it is a problem, but we have to answer. Thsi is what I think.

1. We were not planning on filing BK at that point. Income was sufficient to pay bills.

2. Made a $900 payment on that account a week before paying the $700 payment. If they complain about the $700 can I claw back the payment as inappropiate?

[Bex]

Hmm This is not about fraud, in the $500 luxury charge/90 days prior respect...seems I read somewhere that charging taxes does not convert them to unsecured debt--it's still taxes, which are not dischargable. The lookback period with taxes is the longest, too, seems like it was a couple of years?? I think you're probably screwed on both fronts--the tax charge will be reversed and the $900 payment will be seen as having nothing to do with it, as you can never pick and choose which portion of your balance you're paying, but especially since the payment preceded the charge.

Please, someone correct me if I'm wrong--I'm very new to this (just have good reading retention to draw on)

I do hope I am wrong, for your sake! It seems when we try hardest to do the right thing (making sure taxes get paid), that's when we get screwed!

[LuciluS]

Chase has sent a letter to my Attorney saying they are considering filing a complaint. They are complaining about a $700 charge for taxes back in April.

Lawyer does not think it is a problem, but we have to answer. Thsi is what I think.

1. We were not planning on filing BK at that point. Income was sufficient to pay bills.

2. Made a $900 payment on that account a week before paying the $700 payment. If they complain about the $700 can I claw back the payment as inappropiate?

Let the Lawyer answer the letter/summons or whatever. I just can't imagine they would hire someone to contest a $700 charge even if it was for taxes. Seems like it would cost them more to hire someone. I believe that is why they sent the letter...hoping you would agree to pay, which wouldn't do. Let the Trustee decide.

I wouldn't lose too much sleep over this. The worst is you will have to pay it back after your 341 and may have some money saved by then since you have to be so dang broke on the day of filing.

Luci