Will this creditor object?

[AnnieG]

Hi all-
We have our 341 next week.
We opened a Capital One account in March, 2004. We maxed it out with a balance transfer on opening the account, because its interest rate was so much less. It has a balance of $18,000.

We paid on the account from April to November, 2004, at which time we entered a debt termination program, and the program administrators were to work with the creditors for a settlement. We were to refer the creditors to this company, with whom we had given power of attorney for negotiation.
What I found out late February was that the company we had contracted with was in trouble, but was digging out of some administrative problems, but the that cases were on track. In late March, I discovered that the company had not EVER contacted my creditors. I was so deep in a hole, due to non-payment since November. Couldn't make the minimum payment. Collections for this company wouldn't negotiate on a smaller payment.

To re-cap, the creditor is Capital One; the debt is $18,000. Account opened/maxed with balance transfer in March, 2004. Paid on the account for 8-months; did not pay Dec-May. Made small payment in June. Have not charged anything since Sept 2004. Will this creditor object to discharge?

[InDebtInMD]

My wife and I had an MBNA card on the order of $40,000 and they did not object. In fact, they even reported to the credit bureaus as 'discharged in bankruptcy' before our 341.

Now, we did not do a balance xfer all at once, but rather lots of smaller balance transfers over the years. That's the only difference. I'll bet you will be OK. Do you have any records to show what you did with the $18,000 in case they ask?

[hhou812hh]

Yeah you should be fine. Cap one will have a difficult time proving you intended to defraud them. If it was a balance transfer you may not need proof. The only suspicious thing would be if you did a balance transfer to a non-dischargable debt such as a student loan. Other then that you should be ok with such a long timeline from then to your filing.

[AnnieG]

thanks for the insights. We had done the balance transfer from higher interest credit cards and then closed those accounts. So, we really just moved the credit from one company to another.
The trustee did ask our lawyer why we had opened new accounts in 2004, and we explained that it was to take advantage of lower interest credit cards and closed most of the accounts whose balance we transferred.
Two more days to go 'til the 341!