When you decide it is time to take control over your finances, filing bankruptcy can help. However, many debtors worry whether a Chapter 7 or Chapter 13 will really allow them to eliminate their debt. Can you really eliminate thousands of dollars?
One of the primary reasons individuals seek bankruptcy protection is to discharge their credit card debt, but our clients often worry about whether their credit card company will object to their filing. Although a creditor has the ability to file an objection challenging the discharge of a debt, they rarely do. Additionally, if an objection is filed, it typically is focused on specific debts, not on challenging the debtor’s entire case.
In the case of credit card debt, the most common objection to the dischargeability of certain debts relates to the timing of your filing and the last use of the credit card or amount charged on the card. Pursuant to 11 USC §523(a)(2), a debt is presumed to be non-dischargeable if more than $600 in luxury goods is charged on the credit card within the 90 days preceding the filing. You do have the ability to rebut this presumption, but the burden of proof is on the debtor to demonstrate that the purchases were not luxury goods or services and they qualify to be discharged.
A credit card company is also likely to file an objection in your bankruptcy case if fraud or misrepresentation was involved in obtaining the extension of credit. In other words, if you misrepresented your financial situation in order to obtain the line of credit and the creditor relied upon this fraud, the creditor may object to any purchases made using the credit card.
There are other grounds for objecting to discharge, but most creditors do not want to expend the time and money to object to your discharge unless they have good reason to believe they will be able to recover from you. However, in order to avoid having an objection filed in your case, you should stop using any credit cards at least 90 days before your file your bankruptcy petition.
If you have questions about filing a personal bankruptcy, we can give you the answers. Let us review your individual finances and help you obtain the full benefit of eliminating your debt in a bankruptcy case.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC. DeLadurantey Law Office focuses on student loan debt, Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense. A “defender of the little guy, “DeLadurantey Law Office serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.