Question regarding what happens between discharge and closed

[Noelle]

As a last resort (from losing my job in Feb 2009), I filed chapter 7 in May 2010 and received my discharge from the court in August 2010 - I have the paper in my hand. Now (in Nov 2010) the trustee is asking questions/wanting information regarding some of my creditors and specifically wanting to know what was charged on a credit card 2 years ago (I no longer have access online to get this information and don't have statements since I was a paperless customer).

What does this mean and can it affect the discharge?

[AngelinaCatHub]

Between discharge and close is USUALLY paper work. I don't know what your Trustee as doing, as I believe it is past time for any process. I think he had ten days to assume any kind of fraud. Fraud is the only thing I could imagine he is attempting to pull. He has the ability to reopen the case. If you had been represented, you have to ask your attorney to investigate why or what he is doing. Best I can do for now. 'Hub

EDIT: BTW, you can go back to that credit card and ask for the activity. Before I would do that, ask him directly for the item or date in question. Make HIM work a bit.

[Noelle]

The only thing I can see is that I was fooling myself into thinking that the days of 0% interest on credit cards would last forever so I jumped balances between cards when the 0% would expire. And then the world imploded and the interest rates went up to between 20 and 30% even though I never paid late or missed a payment. I also had gotten a job in another state and the offer was withdrawn a week before my move due to budget cuts but I had already sold almost everything I owned including my tv and appliances (which I then had to replace) and in the midst of all of this I had two daughters getting married and a first grandchild born.
Final crash was having to take cash advances just to pay the bills because the minimum payments went through the roof. I explained all of these things to the trustee and the 341 hearing but I guess she either didn't listen or didn't care.

[biotechsolution]

When you took the cash advances, what did you do with the money? Any chance any of it went to to pay on the weddings?

[Noelle]

Yes, but most of it went to just paying monthly bills after the job loss. I also lost my medical insurance when I lost my job so had over $5000 in bills that I had to pay.

[backtoschool]

I think that the trustee is looking to go after your creditors for a preferential payments or fraudulent conveyance of the cash advances to one of your family members. This would make your case an asset case and the trustee would benefit financially.

[Noelle]

Stupid me - what does that mean?

[tcreegan]

Hi Noelle,

Preferential payment is where you pay a lot of $$ to one creditor and not others. The trustee can take that $$ back and distribute it evenly among all creditors. Payment to family and friends is an 'insider payment' and the trustee can ask for that back and distribute it evenly among the creditors.

thinking that the days of 0% interest on credit cards would last forever so I jumped balances between cards when the 0% would expire. this would be fairly common and not fraudulent. But whoever got the last transfer could be 'preferential'

And then the world imploded and the interest rates went up to between 20 and 30% even though I never paid late or missed a payment. ...so much for caring about anything but their bottom line. Blood suckers....

Tom in Colo