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Credit card debt can normally be discharged in bankruptcy. But, if the debt is the result of credit card abuse, it may become non-dischargeable. In a Chapter 7 bankruptcy, a creditor can make a timely motion to claim that the obligation it is owed should not be discharged because it was incurred as a result of improper conduct on the part of the debtor. The most common form of improper conduct is Credit Card Abuse.
A non-dischargeable debt is a debt that is the result of credit card abuse - does not go away after a bankruptcy. Filing bankruptcy may still be a way to help the debtor keep creditors at bay, but a debt resulting from credit card abuse will not be discharged.
Credit Card Debt And Bankruptcy - What To Expect From The Creditors
If there is a question of credit card abuse, the creditor will try to convince the bankruptcy judge that one of two types of credit card abuse were involved in the incurrence of the debt:
- That the debtor increased his or her debt in the weeks or months prior to filing the bankruptcy petition, knowing that he or she would not have to repay the debt.
- That the debtor used a materially false financial statement in order to obtain credit or to increase his or her credit.
If the creditor prevails in its proof of credit card abuse, a Chapter 7 discharge will not include those credit card debts.
If your debt is the result of credit card debt, please contact us to discuss how we can assist you to resolve this stressful situation.
To receive a free consultation regarding your (or your friend or family member’s) debt problems, please contact us today.
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