whats the chances capital one will file an AP?

[mgs0987]

I filed last month, about to have my meeting of creditors next week. I'm very nervous about an AP from capital one. I have never missed a payment to them but back in june I took a large cash advance check for 3500 dollars to pay basic living expenses for the month of july because I was off work unpaid through FMLA time. The card had a credit limit of 9500 and was within 25.00 of the credit limit when I filed. The rest of the charges were just misc. living expenses, groceries, car insurance, gas, cell phone bill, cable bill, etc..Is capital one known for filing AP's?

[biotechsolution]

might be pretty good. That's within the 180 day window and wasn't a balance transfer. The balance transfer you might away within the 90 day window but the cash advance is different.

[AngelinaCatHub]

3500 is not a large amount in consideration of what an AP would cost them. They could object at your 341. You are fairly close to 180 but do fall within a questionable look back. The worse that could happen is that the debt would not be discharged, but all others would be. You would then have to pay them or they can sue you civilly. An AP only holds up a claim for nondischarge. I doubt they will bother with AP. 'Hub

[mgs0987]

if that happens would I continue to make monthly payments on that debt or do they demand payment in full? I'm confused on the whole process and my attorney seems next-to-impossible to get ahold of...his "gatekeeper" secretery is constantly telling me he's in court, with another client, he'll call back, he'll email...but he never does. ughhh.

[ccsjoe]

mgs0987,

You will have two options at that point, attempt to settle with them for payment in full, or continue making payments until debt is satisfied. This would be normal. Don't think they have anything to gain by being more aggressive than that, even if that much.

[daylate]

Did you continue to pay on the card until you filed-in other words after you took the cash advance? an attorney I was speaking to suggested that if you make some payments on an account after a large charge or cash advance it can help mitigate an AP...don't know for sure but at this point worrying about it won't help-this from one who is a top ten worry wart-good luck

[mgs0987]

yes I have made payments. Infact, up until my file date I was current on absolutely everything. I was just so sick and tired of not making ends meet. I was litterally starving myself to pay my bills because thats just how I was raised...luckily my mom noticed I was dropping weight and decided to buy me groceries lol. So, i just wonder if cap 1 will claim fraud..I've never missed a payment to them ever, i've had them since the day i turned 18 (im 23 right now)...a part of me thinks nothing will happen, but i've heard bad stories about cap 1 and bankruptcy so I wasn't sure....

[daylate]

Sounds to me like your paying will make it harder for them...good luck

[tcreegan]

Hi all,

The making payments bit is to show 'good faith effort' to repay, takes some of the heat off. If I remember right, the magic numbers for cash advances are over $700 w/in 70 days.

Both these lessen your chance of an AP msg0987, lets hope they go away quietly...

Tom in Colo

[BKlooker]

I've done a lot of reading around this forum...so many people worry about AP filings for charges, and so few actually happen.

In my state in fact, the percentage of AP filing for all types of BK is only averaging about 2.5%, which means most sail through. In addition, i think most of those APs are from more 'local' creditors...i.e. a credit union who you owe a car to, a landlord who you haven't paid rent to in like a year, etc. I've only seen a handful of people on this forum over all the years logged here involved in APs for credit cards....the one was a women who used her card after she filed BK due to emergency dental work she needed done, and they came after her for that (it was something like $1600), but all that happened was her lawyer gave them a call, she agreed to pay for the $1600 herself in a settlement agreement, she paid the lawyer an extra $500 to make the settlement document and that was that, the rest of the BK was discharge no problem, including any other outstanding debt she had on the card.

There is even one guy one here who reported racking up $6k in debt just 2-3 months before filing and never heard a peep from the cc company. If they do bark and file an AP, just agree to pay the amount (they would agree to a payment agreement over a certain amount of time) and that's all. It's not like they would come take your bed and cloths or anything.....and as someone else said, 3.5K is a relatively small amount, especially in BK land where some people have quarter million dollar CC bills and 2nd mortgages.

Also, if you choose to mitigate it, if you have receipts to prove where that 3.5K went exactly (you claimed living expenses), it's going to be awful hard for the creditor to prove to the trustee that you intended fraud....but that's if you chose to fight it, and paying a lawyer to fight something like that would probably cost you more than just making a settlement and paying it outright, in addition to dragging things out longer.

I would cost your cc company a good 1,000 to $1500 just to pursue you for it and egg out a settlement, so they only net $2K...hardly worth the effort. Hope things go smooth for you.

[StEt0417]

I filed last month, about to have my meeting of creditors next week. I'm very nervous about an AP from capital one. I have never missed a payment to them but back in june I took a large cash advance check for 3500 dollars to pay basic living expenses for the month of july because I was off work unpaid through FMLA time. The card had a credit limit of 9500 and was within 25.00 of the credit limit when I filed. The rest of the charges were just misc. living expenses, groceries, car insurance, gas, cell phone bill, cable bill, etc..Is capital one known for filing AP's?

Whats AP?

[BKlooker]

AP = adversary proceeding....basically when the creditor file a motion and objects to the dismissal of debt for some reason.

[scuguy77]

Saw this thread and thought comments were very helpful...

Looking at filing around April. Last CC (and Bill Me Later) charges were in Dec. So April would be outside 90 day window. Charges on all cards were less than $200 on any one card (for food, clothes, minor car repair).

There was a balance transfer on one card in Nov of $1350 and that same card was the one we put all the food, household expenses (like clothes, prescriptions etc) which we use to pay in full but then switched to min payment so card went up quick (about $4k over 2 months), again last charges for everything was in Dec. (Dec was trail-off period).

The Bill Me Later (credit via paypal) did have about a dozen charges between Nov-Dec which were mostly for Christmas all of them totaled less than $1100.

Have been making minimum payments on all of them (was going to do that for Jan, Feb and 50% pymts in March).

If we filed in April what is the risk of AP from Bill Me Later? or the one card we did the balance transfer on (which is also highest balance card at $6k)?