Chase Credit Card response?

[Redwing]

What are your recommendations:

-Filed Chapter 7 Aug 2009 (non-asset)
-341 meeting Oct 15, with no complications
-Should be completely released on Dec 15, 2009
-Was unemployed from Jan/09 to Oct/09
-In Aug & Sept I used the Chase Credit Card for various living expenses (i.e...electricity, gas, food, etc..). I spent approx $4,000
-Attorney said he received a letter from Chase pointing out that they're questioning the charges after I filed CHP 7, and that I should possibly negotioate a settlement. He said they could file "abuse" charges.

I know I shouldn't have made those charges after I filed, but they were for living expenses (we were just on unemployment at the time)

I'm meeting with my attorney later tomorrow, so I wanted to get other opinions before I see him. Did I break the law? Should I just agree and pay back all that I own Chase, or since I filed Chapter 7, do I have any leverage? Are these "abuse" charges?

BTW,....I'm back working again, so I could work out a monthly pay back program. I have mixed emotions about paying them back.

Thanks in advance for your thoughts, and recommendations!

[HHM]

First

If those charges were made AFTER you filed, then that debt will NOT BE DISCHARGED in your BK.

Although you are not supposed to use credit after a BK is filed, at the same time, in this case, it doesn't seem like a big deal. Just realize, you will emerge from BK still owing the $4,000.

[justbroke]

You definitely should not have made charges on that card after having filed for Bankruptcy! Now, Chase is trying to determine whether it is worth it for them to actually file a complaint to determine dischargeability of those items.

This is definitely an abuse. Whether it could destroy your entire pending bankruptcy case, will be for your lawyer to talk to you about. At $4K, you're right on the line where a creditor would in fact file a complaint on dischargeability. I don't know how you have mixed emotions about paying them back, when you clearly violated the Bankruptcy Code. They will probably let you pay them back in paymnets.

See what your attorney can do. You may be able to stipulate to 50% of it, and your attorney would say things like "to avoid cost of litigation... we offer 40% of the amount to be paid in installments...". It would cost them (creditor) money to prosecute the complaint, so you'd save some money there on stipulation.

Remember, that it can easily cost you $5K to attempt to fight this complaint. If the you lose, you're out $5K more... and still need to pay the $4K.

Sit down with your attorney and find the best solution.

[frogger]

Sit down with your attorney and find the best solution.

Time to talk settlement.

You made those charges after bk, so they are abuse/fraud.

[shabam]

You are going to have to pay them back no matter what. You filed BK and were also unemployed.

I would just take a settlement and be done with it. Do not let it go to an AP as you will lose.