Here is my background for those who are new.......filed chapter 7 under the old laws, married but filed on my own. Case discharged on January 17th, 2006, trustee found a pref. payment maid to my wifes credit card which I'm an authorized user............trustee finalized a settlement with the credit card company for $7,500. Trustee mailed out last week notice to all creditors and a letter sent to me that if I wanted a hearing concerning the matter I have 23 days from the date of mailing to repond..............lawyer said no response is necessary just let it go, the credit card company will send the money to the trustee and upon sending the lrft over amount to the creditors the case will be closed. Does this seem correct ? Also will the credit card company try to get the $7,500 back by putting it on the card ? Currently there is not enough room on the card to add over $1,000. Anyone with experience similar to this ?
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Regarding the closing of the case, yes...your attorney is probably right. If the resolution of the preferential payment was the only thing pending, and it is wrapped up, your case will be closed as soon as the trustee distributes the funds to the creditors and writes his final report (that could take a few months if the trustee needs to wait for creditors to file proof of claims). There have been a lot of posts about "closing" of cases. You need to realize that all you, as the debtor, really care about is "discharge" not closing. Most anything that happens after discharge is administrative and usually of little concern to the debtor...YOU ARE OUT OF BANKRUPTCY UPON DISCHARGE, not at closing.
As to what the credit card company will do. Since you did not file a joint BK, and this is your spouses credit card...I suspect they will put the balance back on the card. The debt was only discharged as to you, not your spouse. But again, they may do nothing...but legally, I believe they could put the balance back on the card.Comment
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