BOA...How much time do i have left

[pa308]

As some of you may know, I was looking to file ch7 late May. I will be paid up with my atty late April but wanted to hold off til late May due to a payment I made to my mother in law 5-22-07 of 1,000.00

Today I received a letter from Bank of America stating that as of April 18th they are going to write off my account as a bad debt. They will then refer to their attorneys and submit to binding arbitration. "Based on your current positive assets and employment status my decistion is to arbitrate your account unless I hear from you by then".

What do I do at this point? How long does it take to go from arbitration to judgement? Should I file as soon as possible in April and hope that the payment to MIL isnt a problem?

One other thing regarding MIL. As I said I paid her 1000 in May, but she then gave/lent us 1500 in July same year. One article I read on a lawyers blog kinda says that takes away the preferential payment but leaves me with a loan to MIL that i might need to mention.

Any comments/opinions from those that have dealt with this and BOA or any creditor would be appreciated...

[parsoc48]

pa308, BoA sends lots of letters over many months, it will take quite a while to serve you, get a court date, etc. You should be more than fine if you're filing late May. The MIL issue I don't know too much about, but my attorney wasn't worried about anything beyond last 6 months.
Good luck!

[treehugger1]

Arbitration is not the same as a court action. In most states a judgment will require an official suit or default. The arbitration process can be drawn out for a lengthy period of time depending upon how you want to address any actions that an arbitrator might bring to bear on your situation.

[epiphany]

My last payment to B of A was last July. I have received many different letters stating many different things (including that it's going to be charged off any day) and still get voice mails from them saying they want to work it out. However, according to what you have posted, you may have some tangible assets they are interested in. I don't have much in the way of assets so they could be treating me differently than they would you.

You say you made the payment to your MIL in May of 07? That's way past the point where it would be considered a preferential payment. Not to worry.

But, you still owe your MIL 1500? Is she willing to forgive the debt or understand your situation and wait until after discharge for payment? How that plays out is going to depend on your relationship with her. Technically, you are required to list all debtors when you file. But if you and she are close, you trust her, and she is willing to wait, then I don't see the need to disclose it.

Good luck,
ep

[pa308]

I dont know about tangible assets. Appx 10k equity in house. A 96 Jimmy and 99 Subaru.......So basically they'll try to lien on my house i guess.

My atty said just to keep him advised to the arbitration. If they move quickly we will file right away.....Time to take the credit counseling course asap.