Best way to handle adversary proceeding

[whipster1]

You can probably offer a settlement for say 50% and see if they bite. It will cost them $$ to go forward so they may bite.

[jadams]

Why do you say it's definitely non-dischargeable just because it's a business debt?

I included my Amex Business in my petition...

I'm confused.

[jturk]

justbroke,
its an llc

[justbroke]

I think that they (AMEX) will be able to win solely on you entered into that financial arrangement and never made a payment. I don't know how you'd win this AP. You may want to settle and stipulate to a certain amount.

Are you represented? BTW, what was the organization of your business (LLC, Partnership, S Corp, C Corp, Sole Proprietorship).

[HHM]

This is a no brainer AP for the creditor. You will lose based on the facts provided.

As for best approach, contact them and offer to pay them $5,000 on a payment plan, something you can afford, but they probably won't stretch it out any longer than 24 months, at best.

Good luck.

Hopefully you are discharging a bunch of other debt in your BK, so big picture, it may be a small price to pay to come out of BK only owing this $10K.

[jturk]

justbroke, in answer to your questions...

yes it was a business debt.

yes it was done on a business credit card.

my intention was to buy a minority ownership in a virtual dating website.

i never made a payment because my financial situation started to snowball after that & was only able to pay for bare necessities.

the business is an online virtual dating service.

yes im pretty sure it was a personal guarantee.

[justbroke]

also if there are any attorneys on here, i would like to know from your experience...how often do creditors win ap's such as in the situation i described.

Not an attorney, but they are easily won, just on what I just wrote above. You may be able to get a stipulation to pay less. However, it would still be non-dischargeable.

[jturk]

also if there are any attorneys on here, i would like to know from your experience...how often do creditors win ap's such as in the situation i described.

[justbroke]

Well, if it's a business debt, it is non-dischargeable. Also, since you made absolutely no attempt to repay the debt... they are probably claiming that it was fraud under the guise that you never intended to repay the debt.

The burden of proof is now on you.

So, questions are...

1. Was this a business debt?
2. Was this done on an American Express business card?
3. What was your intent?
4. Why did you never make a payment?
5. If you were a business, what type of organization did the business have?
6. If it was a business card, I'm assuming a personal guarantee, was it?

[backtoschool]

That big a debt (10k) charged less than a year before filing, with no payments ever made on it, will give AMEX a good case for an AP. Amex will try to show that your intent was to never pay that charge back. This is hard to prove, but the fact that you never made a payment on it, is not going to help.

If they win, it means that that debt will not be discharged, but it won't affect the rest of your bankruptcy.

The fact that you got ripped off is not going to help you if you didn't file a fraud or theft claim with amex after you made the charge.

The fact that you didn't like the goods and services that you charged is not going to win the AP for you. You need to have a really good reason for why you never made a payment on the charges in order to beat this in my opinion.

[jturk]

hi all, i have a question about an adversary proceeding:

I filed my petition in july 09.

In september 08 i charged up about 10k on one credit card paid to someone else (not cash advance) over the course of 2 days. I never made 1 payment on the card.

I paid money to get involved with a virtual dating website as a business venture which i eventually got ripped off, the guy never paid me according to our agreement. which is really the reason i never made 1 payment on the card. so the business venture didnt work out & i really didnt benefit from the 10k i charged to the credit card.

American express filed an adversary proceeding claiming the debt should not be dischargable and i have been ordered by letter to respond to theyre claims.

Can anyone here give me some advice on the best way to handle this situation? Any advice is appreciated.