Objection to discharge
We just attended our 341 hearing two weeks ago. Yesterday we received a notice from a lawyer stating that MBNA (one of our creditors) is "considering" filing an objection (adversary proceeding, I believe is what they called it), unless we make a settlement with them. Can someone please tell me the background information on what this entails? What courses of action are typical/expected? What types of settlements/percentage of amount owed are typical? We did NOT commit fraud as they are insinuating, but we have NO money to pay off or reaffirm this creditor (nor do we have the legal fees to go fight them tooth and nail in court). They state they are suspicious because our debt consolidation line of credit with them consisted of two balance transfers and two cash advances within a two week time frame. We filed for BK almost 4 months later. We have to wait until our lawyer gets back in town next week before we can talk to him. Meanwhile, we are so nervous and stressed. Any information would be so appreciated! Below is a little more background.
We filed for Chapter 7 the last week in December. We stoped using our credit cards by the first week in September. The MBNA account we had, actually was a debt consolidation account (they never issued us a card, only checks for balance transfers and pre-filled out checks for cash advances),... we signed up for it last Spring but didn't use it for several months; saving it in case of an emergency. During the summer we came under some extreme financial stress- financial emergencies. At the end of August we did two balance transfers using MBNA checks, one for $2500 and another for $4900... in order to try and get our minimum payments lowered on those other cc accounts. A week later, we took out two cash advances to pay for a huge vet bill, our car registrations, household neccessities, dental visit, groceries etc. No luxury items were bought, no trips, no new furniture, no electronics... nothing. Just basic necessities. We were hoping to buy some time until my husband received his end of the year payment from his employer ($16,000), which in turn we would just pay off the MBNA card as well as pay down some other credit cards. My husband's employer notified him in November that his pay would be cut (by over $16,000), and another freelance job of his fell through (loss of $4500). We were in dire straights and decided to go through with BK. We were not able to pay off MBNA obviously.
I am so worried sick right now about this objection. I've read up how more and more credit card companies are filing this because they know you will settle because you can't afford to go through the legal proceedings and there is no way the court/trustee can intervene at this point.
Any advice/information? It would be greatly appreciated! Thank you.
We filed for Chapter 7 the last week in December. We stoped using our credit cards by the first week in September. The MBNA account we had, actually was a debt consolidation account (they never issued us a card, only checks for balance transfers and pre-filled out checks for cash advances),... we signed up for it last Spring but didn't use it for several months; saving it in case of an emergency. During the summer we came under some extreme financial stress- financial emergencies. At the end of August we did two balance transfers using MBNA checks, one for $2500 and another for $4900... in order to try and get our minimum payments lowered on those other cc accounts. A week later, we took out two cash advances to pay for a huge vet bill, our car registrations, household neccessities, dental visit, groceries etc. No luxury items were bought, no trips, no new furniture, no electronics... nothing. Just basic necessities. We were hoping to buy some time until my husband received his end of the year payment from his employer ($16,000), which in turn we would just pay off the MBNA card as well as pay down some other credit cards. My husband's employer notified him in November that his pay would be cut (by over $16,000), and another freelance job of his fell through (loss of $4500). We were in dire straights and decided to go through with BK. We were not able to pay off MBNA obviously.
I am so worried sick right now about this objection. I've read up how more and more credit card companies are filing this because they know you will settle because you can't afford to go through the legal proceedings and there is no way the court/trustee can intervene at this point.
Any advice/information? It would be greatly appreciated! Thank you.
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