question about letter from attorney

[bankit]

I received a letter from an attorney stating the were retained to represent one of my credit card companies. They state that thier client is considering filing an adversary proceeding due to.... charges accumulated between the 3 to 6 month period before I filed chapter 7 bankruptcy.

The letter basically goes on to threaten that if they do this all or part of my debt may survive bankruptcy. They then give two options before they decide to give this to local counsel.
1) reaffirm 2)pay 2/3 lump sum

It says to contact them or if I disagree to provide them with sufficient explanation to alter their view.
It then says "This letter is to be used for settlement purposes only."

The total amount accumulated is approximately $3000. My first instinct is the letter is a threat letter fishing for people to pay and to not reply.
The other thought is to send a letter requesting additional info under FDCPA.

I would appreciate some direction or insight. Thank You

PS I also know that this amount was not fraudulant and expenses were used for living needs, not luxury items.

[StaciMM]

I would think that if the charges were for living items, and 3-6 months before you filed, you'll be fine. Its far enough from your file date that the burden of proof is on them.

Regardless it would probably be good to discuss w/ your attorney-he'll have an idea of how the trustee usually rules on things.

[bankit]

I just didn't want any thing to jump up at the last minute. I am getting closer to the 60 days.
I also wondered if these letters were fairly common. Seems to me that even if they only had 1 out of 10 get scared and reaffirm, that would add up to big money from just sending out scare letters.

[StaciMM]

How close to 60 days are you?

[bankit]

20 days

[StaciMM]

Hang in there!

Perhaps your idea to write & request info will stall them...

Edited to add-6 of those are weekend days, and I'm sure the courts will be closed for at least 1 day for Christmas and NY's.

[FilingOnMyOwn]

Yeah. Screw them. If it were me, I wouldn't offer a red penny. After all, isn't it the trustee's final say on whether you have to pay anything? And you obviously don't have anything to pay, or else you would not have qualified for chapter 7. If it were me I would just be a smartass to them, and my response to them would be: Sorry, I don't have any money, thats why I filed bankruptcy. Ultimately, even if you did end up owing the 3k, after another 6 months of not paying anything they would be sending you offers to settle for 1000 or so, not 2/3. Then they would just end up charging it off anyways. They probably have an attorney that sends out that same letter to everyone.

[StaciMM]

You don't want a charge off after BK! Most likely this will not turn into anything. But, if the charges were questionable (not living expenses, but something you thought the trustee might side w/ the creditor) it would probably be better to work something out.

[down @ out]

Have to say I would not pay them a dime. As long as your intention was to repay and you can show that I would not succumb to this craziness. These evil folks are just trying to steal a little more money before your discharge.

I would fight to the bitter end and take no prisoners. If they do file you can burn so much of their money up with discovery requests you will encourage the rats to crawl back into their holes.

Good luck

[FilingOnMyOwn]

Of course he doesn't want the charge off staci. My point was, chances are they won't bother anyways because that would be the end result either way, so they still lose.

[bankit]

Thanks for the replies. Would it be better then to leave it alone, or contact them?

[bkfiler]

do you have an attorney? im guessing not. remember that creditors come after pro-se filers because they know that most of them dont practice law and dont know how the game works.

i myself wouldnt want to deal with this type of situation. maybe a consultation or 5 with some attorneys about it would give you some inside information.

these letters are not common. the creditors are paying them money to work with you so they want their money. anything you tell them can be used in court against you, remember that.

yes maybe if you ignore them then they go away but i guess i wouldnt. it will be interesting to see how this turns out.

can you please post your date of filing, 341, and expected discharge along with date of letter to you, the amount of the charges and when they occurred? it would help us learn and keep track of it. thanks.

good luck