Creditor objecting or just trying to get some money

[KCane28]

I received a letter forward from my atty that an Atty for chase CC wants to
1. Settle my account ( $4350) for $2700 cash or
2. Possibly pursue a section 523 action non-dischargeablilty of the dept

My husband had a credit card that we had to use 3mo ago to fix my car. I did not have a car to drive to work. He was laid off 8 mo ago and he had used the card for living expenses mostly. NO cash advances or such. I was going to file BK by myself so I have not used my cards in a while, but he didn’t decide to file with me until his unemployment was denied for 3 months and had no income. This is the only new card we had. All of our other cards all several years old.
Our atty wanted the last 6 mo of CC statements after she took a look at them said she would just write the a mean letter back.

Is this typical for CC to try and get something from you or are we in some trouble?

[despritfreya]

Not unusual. I typically ignore such letters. If the CC comp thinks it has a 523 issue then it needs to timely file its complaint. Otherwise, too bad. 99% of the time such letters do not result in the filing of a complaint. The other 1%, if a complaint is filed, we settle the account at that time.

Des.

[AngelinaCatHub]

I am still getting settlement letters from CA's. I just send them a letter with my copy of my discharge and warn them not to send another. Then the account gets sold to another CA and it starts again.

If you attempt to settle, it will ruin your bk as it would be preferential. Did your hubby pull cash or purchase items? Since your attorney saw six months back and will respond with a nasty note, I don't think you should worry. BTW, 'des' is a lawyer of the bk kind and has been most helpful. He is kind enough to aid and I've learned a lot from him too. 'Hub

[frogger]

Not unusual. I typically ignore such letters. If the CC comp thinks it has a 523 issue then it needs to timely file its complaint. Otherwise, too bad. 99% of the time such letters do not result in the filing of a complaint. The other 1%, if a complaint is filed, we settle the account at that time.

Des.

I agree. Don't do it - don't settle - ignore it.

Talk is cheap, so let them file their complaint if they choose to do so. AP's are not "that" common.

[HHM]

I'd ignore it and make them file the complaint, but the timing is going to be important here. Was the charge within 90 days of filing BK, if yes, your odds of losing go up, if outside 90 days, you will probably be fine. But either way, sounds like you have a pretty good explanation (i.e. necessary expense).

[tcreegan]

Hi KCane28,
Is this typical for CC to try and get something from you

If they can get you to cough up a couple grand for the cost of a couple letters...they would be fools to not try.

or are we in some trouble? .....doubtful

Des' gave you the odds. To actually do the AP, they spend some $$ on attorneys and the burden of proof is on them. High risk, high cost, it's gotta be worth it.

Good luck with it, keep us posted on the outcome!

Tom in Colo