Debt Incurred within 90 days Prior to Filing

[MC9199]

I did some balance transfers (Chase CC accounts) about a month before filing that I knew would be non dischargeable ($1800 total).

I had the 341 about a week ago. The trustee has reported No Assets in my case. Before filing, my attorney mentioned that it might be possible to settle for less than what is owed.

When can they start demanding payment...and when do I have to start paying back?

Has anyone settled something like this for less than what is owed, and under what kind of terms?

Thanks.

[keepmine]

Have they made any sort of demand for repayment?

[nickifan]

Have they made any sort of demand for repayment?

Yeah, what he asked ....

You are looking ahead to a possible Adversary proceeding and a challenge to your most recent charges? I'll be interested to hear if you get them...I won't have the luxury either of having NO charges within 90 days of filing. But I have been told that if the charges show as food, gasoline, health insurance, and such, it is less likely I might be challenged. Good luck to you!

[MC9199]

My attorney e-mailed me and said he got a call from Chase, and they were offering: pay us back $50 per month. The e-mail did not say how many months. I guess I would assume 36 since they said no interest. I asked him to get more info for me, so that is in process. My attorney in the e-mail to me said, how would you like to handle this and I replied basically, well, what is possible here, get me some more info and that is where it stands now.

When I used the balance transfer checks, I deposited them into my checking account to cover bills (even though they are called balance transfer checks, you can make them out to yourself), and it mostly ended up going towards the mortgage payment, though I probably can't clearly prove that with a paper trail. Just basically, OK, the money was deposited on this date and a couple days later I wrote a check for the mortgage.

The 341 was uneventful. No creditors appeared. The trustee's report says No Assets.

So given this information, what's the best thing to do? Of course I'd like to pay as little as possible. What do I do here...do nothing and hope they will blow it off? Or can they initiate some process to get me to pay? Is it up to them at this point to file a motion or something to get their money?

[Dst1]

So given this information, what's the best thing to do? Of course I'd like to pay as little as possible. What do I do here...do nothing and hope they will blow it off? Or can they initiate some process to get me to pay? Is it up to them at this point to file a motion or something to get their money?

In order to have their money pass through BK they would have to start an adversary proceeding. They, of course, will win because under the law the charges are presumptively fraudulent. But it's going to cost them money to file that adversary proceeding. Maybe it just slips through the cracks.

OTOH hand $50 a month zero interest is a good deal. If they do have to go through an adversary proceeding maybe they won't be so accommodating later.

Seem like a good old fashioned truth or dare.

[keepmine]

In order to have their money pass through BK they would have to start an adversary proceeding. They, of course, will win because under the law the charges are presumptively fraudulent. But it's going to cost them money to file that adversary proceeding. Maybe it just slips through the cracks.

OTOH hand $50 a month zero interest is a good deal. If they do have to go through an adversary proceeding maybe they won't be so accommodating later.

Seem like a good old fashioned truth or dare.

Maybe have your lawyer counter with an offer to settle for $1000 at $50/month.

[LimpDisc]

Maybe have your lawyer counter with an offer to settle for $1000 at $50/month.

Not sure what the OP can come up with as far as cash, but I would try to offer a 50% or less one time payment.

[MC9199]

Maybe have your lawyer counter with an offer to settle for $1000 at $50/month.

That's what out counter offer is; we'll see what happens. On further examination, the non-dischargeable debt is actually only $1300; but they (Chase) are trying to get $1800 ($50 per month for 36 months).