Posted on
June 18, 2009
at
5:43 am
I thought bankruptcy discharges credit card debts but then I learned that that is not always true? Can somebody please clarify this for me. What happens to some credit card debts after a bankruptcy discharge?
Posted on
June 18, 2009
at
5:48 am
Although I'm not a lawyer, I think when a credit card debt's discharge is challenged by the creditors, it means that they found out that: 1) the card application was fraudulent 2) there was no intention to pay the card
Posted on
June 18, 2009
at
6:03 am
For the court to revoke the discharge of that debt, a complaint must first be filed by the creditor or trustee, on the basis of fraud or your refusal to answer certain questions. This should happen either within a year of your discharge or before your case is closed. Whichever comes later. You are going to be notified of this and you have a right to obtain a copy of the complaint so you can respond. There should be a hearing first to decide whether to revoke the discharge or not. Remember that it can't just be revoked. There is a process to it. You'd have a chance to dispute their claim, but you are going to probably need the help of a bankruptcy lawyer.
Posted on
June 18, 2009
at
6:06 am
Is there a list of "don'ts" to follow to avoid that mess?
Posted on
June 18, 2009
at
6:12 am
Well there isn't an official list, credit card companies have of course, different policies and different criteria as to what activities are to be red flagged, but generally: -if there's an increase in the card usage before filing-if there are large cash advances months before filing-if there's a pattern of borrowing on a card to pay the other cards-if the consumer keeps on exceeding the credit limit-if the consumer is unemployed and still uses the card as per usual-if the balances on the cards are somewhat large before filing-if there were charges on the cards right after consulting with a bankruptcy lawyer
Posted on
June 18, 2009
at
6:19 am
To add to what msissbedingfield's list, cash advances that are over $1075 within 60 days of the bankruptcy are going to alert the creditors/trustees. Purchases of luxury items within 60 days of bankruptcy might also be considered non dischargeable by the court. It is somewhat time based. The longer the time between the card activity and the bankruptcy filing, the lesser the likelihood of a discharge challenge.
Posted on
July 7, 2009
at
2:11 am
Although your concern is about credit card debts after the bankruptcy discharge--I'd just like to add that in cases wherein the bankruptcy case is dismissed (due to perhaps a change in your financial situation) you're going to owe your creditors the original amount that you owe them from before you filed. All of your payments while the case was on-- would be disregarded. Also credit card debts that would not be discharged in your bankruptcy are those that you have forgotten to list in your mailing matrix.
Posted on
July 7, 2009
at
2:20 am
thanks a lot everybody for the replies! I have another question---for a Chapter 13 case, and as peterpanamerican has said,that if the case is dismissed then I'd have to pay what I originally owe the creditors--how can the case be dismissed in a repayment plan? Is it because you've missed a payment or two...
Posted on
July 7, 2009
at
2:44 am
the case would be dismissed if you absolutely can't complete the plan, if you lose your job or what gives you income--and not when you've missed a payment or two--if you've missed a payment or two, you can arrange with the trustee to make up the difference.
Posted on
July 7, 2009
at
2:48 am
Just to add to that--if you absolutely can't push through with the plan--and instead of wasting what you've already paid with a dismissal--try instead to obtain a hardship Chapter 13 discharge.
