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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 30905
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I filed Ch 7 bk and the atty took my full payment last Nov

Customer Question

I filed Ch 7 bk and the atty took my full payment last Nov but said to wait 90 days to file due to the laws (Colorado). Which we did... we filed this last Feb 2013.

One of my creditors was AMEX Platinum card who had given me approval to pay the IRS $7000 last Sept 2012, however, they then cancelled my Pay Over Time option, thus, I was faced with a $7000 payment to them IN FULL.... I also had 2 other debts I included in the bk.

AMEX then filed a claim against me in the BK and hired attys to fight the BK... And my own atty agreed that I should now pay the $7000 back to AMEX after my bk is discharged ... And I have no money. Social security and part time retail income of $275 week. I live in a small apartment and have no valuables. 65 year of single female.

I have a legal Settlement doc to sign now agreeing to pay Amex $120 month for many years until I pay them off and I have no money to take on a new bill after paying rent, car and living expenses! My atty says I have to... BUT WITH WHAT MONEY???? If they garnish my wages I lose my retail job altogether. Then I have less money to live on. What good is my signing this AMEX agreement to pay? This is all about $7000 and AMEX wants to keep pushing to drag money out of me after I filed Ch 7 months ago.... And I have no money.
My atty says I need to keep paying him more money before he'll help me any further.
Please help me and advise me as to how to handle AMEX ... And what they can do to me after all this has occurred .... I'm paralyzed.
Christine S.
Littleton, CO
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 3 years ago.

Hi - my name is Kirk and I'm a Bankruptcy litigation attorney. Thanks for using JA! I'll be glad to assist.


Was this debt not discharged through your bankruptcy?

Customer: replied 3 years ago.
Kirk I sent you a reply twice yesterday ... Not received?

No AMEX not discharged... They are claiming against me.

Also... My atty referred me to a car dealer last Nov that sells to BK clients since my previous car was incl in BK and turned in. However this new dealership had to re-do the loan 3x and was penalized $11,000 +++ after doing bad/incorrect loans for my car loan. The BK Judge I saw after filing (at the Hearing) in Feb hired attys to investigate these loans is receiving this pay out and the money will be distributed ... But to who, and how much? Will Amex receive funds from this dealership money? No one divulge this to me. I've asked my atty several times about this money.

Expert:  Roger replied 3 years ago.

Hi Chris -


For whatever reason, I didn't get your posts yesterday. Sorry for the delay.


Thanks for the additional information. If the AMEX debt was not discharged, then it does have the right to pursue collection of the debt, and if you can't work out a deal, then you could face a wage garnishment, bank levy, etc.


One option, however, is to re-open your bankruptcy and include this debt and have it discharged. That's likely the best avenue to pursue if you can't pay what they're demanding and you don't want to face a wage garnishment/bank levy.


As for the payout from the dealership, if the money is based on a claim you had/have against the dealership, then the payment would be an asset of your bankruptcy estate and the trustee would get the money to pay over to creditors. Who gets what depends on the number of creditors, etc., but most unsecured creditors will likely receive a portion of these funds.