Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

*** AP Filed Against Me - Please Help!! ***

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • *** AP Filed Against Me - Please Help!! ***

    Just before my chapter 7 was about to be finalized, a credit card company filed an AP against me.

    They filed a complaint seeking exception to discharge pursuant to 11 U.S.C 523 A 2 A.

    They stated that I spent $7000 within 70 days (7 months before I filed BK) and then stopped making payments because my monthly income covered all but $30.00 of my expenses. Because of this, they stated that I deceived them, and that they want their debt to be an exception.

    When I filed BK, my paralegal asked for the prior 6 months of income which came out to the figure that they presented on the AP. The fact is that when I was making these charges, I had a different income. I had a regular renter who was paying me about $600.00 a month. I did spend a lot of money in a period of two months, but I had every intention of repaying it until my regular renter moved out. Because of my divorce a few months before that, I didn't have the income to make my payments.

    I made most of the charges between March 12 and May 22 (restaurants, hotels, food, gas, one plane ticket, and $1300 at a jewelry store). I made a minimum payment of like 30 or 40 in April, then they raised my APR through the roof in May which also made it very hard. I filed BK at the end of December 09.

    I filed an answer to the AP already and it is showing in PACER with all of this evidence.

    IS there anything else I need to do? Do I have a chance?
    1
    YES
    75.00%
    12
    NO
    25.00%
    4
    Last edited by AZJack9; 04-08-2010, 06:31 PM.

  • #2
    Originally posted by AZJack9 View Post
    Just before my chapter 7 was about to be finalized, a credit card company filed an AP against me.

    They filed a complaint seeking exception to discharge pursuant to 11 U.S.C 523 A 2 A.

    They stated that I spent $7000 within 70 days and then stopped making payments because my monthly income covered all but $30.00 of my expenses. Because of this, they stated that I deceived them, and that they want their debt to be an exception.

    When I filed BK, my paralegal asked for the prior 6 months of income which came out to the figure that they presented on the AP. The fact is that when I was making these charges, I had a different income. I had a regular renter who was paying me about $600.00 a month. I did spend a lot of money in a period of two months, but I had every intention of repaying it until my regular renter moved out. Because of my divorce a few months before that, I didn't have the income to make my payments.

    I made most of the charges between March 12 and May 22 (restaurants, hotels, food, gas, one plane ticket, and $1300 at a jewelry store). I made a minimum payment of like 30 or 40 in April, then they raised my APR through the roof in May which also made it very hard.

    I filed an answer to the AP already and it is showing in PACER with all of this evidence.

    IS there anything else I need to do? Do I have a chance?
    I may be over-thinking the all BK process and maybe I am worrying too much... but I stopped using most CC about one year ago and ALL of them more than 6 months ago.

    I would have never thought of filing BK if I had spent $7k within the last two months.

    I wish you good luck, but from my point of view it doesn't look good.

    Comment


    • #3
      Originally posted by AZJack9 View Post

      I made most of the charges between March 12 and May 22 (restaurants, hotels, food, gas, one plane ticket, and $1300 at a jewelry store).
      You're bold. I wouldn't have done that. You probably need to get ready to get your wallet out.
      All information contained in this post is for informational and amusement purposes only.
      Bankruptcy is a process, not an event.......

      Comment


      • #4
        Maybe my summary wasn't clear. The charges were made in May, 7 months before I filed BK and my income was higher at that point. I think that the creditor doesn't have a good case.

        Comment


        • #5
          Unfortunately it can be very expensive to fight a AP. I suspect what hurt you was not only the amount you charged, but the items as well. 7K worth of spending in a 70 day period is a big red flag when filing only a few months later. (even 7 months)

          I hope you are right and they don't have a good case, but from what you've stated here...I would be considering some sort of settlement with them, as it may be the least expensive option.
          8-07-09-filed Chapter 7
          11-18-09-DISCHARGED!!

          Life is not what challenges you face, but how you face those challenges.

          Comment


          • #6
            You mention having a paralegal. Do you actually have a lawyer? If so, what does he/she think about it?

            Do you have a good paper trail of your income, i.e., cancelled checks from the renter, income tax statements, etc.? While the burden of proof is on the creditor, you would be wise to be as well prepared as possible.

            Also, if you do have an attorney, in most cases, defending against an AP is a different matter than the original bankruptcy, and the attorney may want you to enter into a new contract with more fees.

            Good luck!
            "To go bravely forward is to invite a miracle."

            "Worry is the darkroom where negatives are formed."

            Comment


            • #7
              I have a paralegal and she says that my "answer" is very good. Yes, I have cancelled checks. I want to fight this myself because I feel that I have a very good chance.

              Comment


              • #8
                I just called the attorney for the credit card company and offered him a settlement of 20% on all of the charges I made after my last payment. $920 of $4700. He sounded like it may be something that the bank can work with. I sent him an email with the offer. He stated that the bank will review it and get back to me.

                Comment


                • #9
                  Really interested in how this goes, so please keep updating. Looking to find the real risk of APs like this. Real risk = what will they take to settle.

                  Also, care to disclose which bank?

                  Thanks for updating and good luck!
                  12/2009 Stopped paying CCs; 3/10 1st suit;
                  8/2010 finally served; No Asset 7 filed. 11 mos since last bal xfer
                  9/22/10 60 day club; 9/24/10 report of no distr; 11/23/10 DISCHARGED

                  Comment


                  • #10
                    It is First National Bank of Omaha. I am waiting to hear back from their attorney at this time.

                    Comment


                    • #11
                      Originally posted by AZJack9 View Post
                      It is First National Bank of Omaha. I am waiting to hear back from their attorney at this time.

                      Thats not one of the big boys, sounds more like a regional bank. Probably why they have more time to scrutinize those who are defaulting. 7 months from last charge to filing is a pretty good amount of time to let things rest before filing. They must be angry.
                      Stopped Paying CC's 2/2009. Retained Attorney 1/10/2010 Filed 1/23/2010. Discharged 5/19/10 $187K CC, $240K 2nd,$417K 1st, No asset Ch-7

                      Comment


                      • #12
                        My lawyer said that typically when she notifies credit card issuers that she's fighting the AP, the creditors give in or at least are willing to settle for <50% of the amount they're questioning.

                        The reason is that it's expensive for the issuer to send a lawyer from NYC or San Francisco (this seems to be where most of the big issuer's law firms are located) to our local courtroom to fight the proceeding and perhaps get only a couple thousand out of the person.

                        Anybody experience this? I'm curious, as I'm in the "60 day window" right now.

                        Comment


                        • #13
                          I just found the following notice on PACER...any input as to what the telephone conference is for and what my next actions should be?

                          Defendant having answered; IT IS HEREBY ORDERED:
                          Pursuant to Bankruptcy Rule 7016, the parties are to appear at a Scheduling Conference not to exceed 15
                          minutes at the U.S. Bankruptcy Court, [XXXXXXXXXXX], 5/18/10 at 11:00 AM .
                          1.
                          Except as modified or limited by this Order, Federal Rules of Civil Procedure 26 through 37 (as amended
                          2009), made applicable to this proceeding by Rules of Bankruptcy Procedure 7026 through 7037, shall apply
                          to all discovery in this proceeding.
                          2.
                          The parties shall hold their initial meeting pursuant to Rule 26(f) no later than 21 days prior to the Scheduling
                          Conference ordered hereby. At the parties' discretion and where appropriate, this meeting may be held
                          telephonically.
                          3.
                          The parties shall make the initial disclosures required by Rule 26(a) not later than 14 days following the Rule
                          26(f) meeting held pursuant to paragraph 3 of this Order.
                          4.
                          At the Scheduling Conference, and after consultation with the parties and considering the nature of the claims
                          to be resolved, the Court will decide whether further compliance with Federal Rules of Civil Procedure 26(a),
                          (d), (e) (1), and (g) (1) is necessary or appropriate in this proceeding. If further compliance is excused, limited
                          or conditioned, the Court will enter such further scheduling orders at the Scheduling Conference as may be
                          appropriate in the circumstances.
                          5.
                          It is the Court's intention to set this proceeding for trial at the time of the Scheduling Conference. Counsel are
                          to have access to such information as they deem necessary to advise the Court of the reasonableness and
                          convenience of the trial date set. Motions for a continuance of the trial date based upon information available
                          to counsel at the time of the Scheduling Conference will be disfavored.
                          6.
                          Date: April 15, 2010 BY THE COURT

                          Comment


                          • #14
                            California11 - The attorney for First National was trying to point me in that direction within two minutes...he asked for 60%. Knowing that banks settle with debt consolidation companies for 20-25%, I would start there and work your way up.

                            Comment


                            • #15
                              OK so I finally just heard back from the bank's attorney. They submitted a counteroffer of 60% which they are claiming to be about $5000 with monthly payments of $100. I feel that it is a little high and I am waiting for them to put it in writing.
                              Last edited by AZJack9; 05-06-2010, 05:44 PM.

                              Comment

                              Unconfigured Ad Widget

                              Collapse
                              Working...
                              X