Can A Credit Card Company Come In Way Of Your Debt Discharge

Posted by changandcarlin on August 26th, 2013

Many people who approach the law office of Chang and Carlin to file for Chapter 7 Bankruptcy in Chicago have credit card debt. The good news is that credit card debt is one of the easiest types of debt to discharge in bankruptcy. The most common question that our clients ask us is, “Will my credit card company object to my bankruptcy?” Although credit card companies may issue the most bankruptcy discharge objections, it is extremely rare for them to challenge your full bankruptcy. They generally only object to the discharge of debt in specific situations, which can include:

• Timing of Bankruptcy: The most common reason why a creditor would allege that the debt you incurred to them is non-dischargeable would be due to the timing of your bankruptcy as it relates to the last use of your credit card or amount put on the card. It is called an “abuse of the bankruptcy process due to the intent of the use of a credit card”. Conversely, the more time that passes between the questioned credit card activity and the bankruptcy filing, the less likely the charge will cause a discharge dispute.

• Fraud: Another reason a creditor may object to your discharge is fraud and misrepresentation of your assets in order to obtain credit.

• Transferred Assets: The transfer of ownership of valuable items to family members or others just before filing bankruptcy can cause a creditor to challenge the bankruptcy case. It is particularly a problem if the asset you transferred would not have been fully exempt.

• No Intent to Repay: A credit card company may also claim that charges were placed on the credit card when the debtor had no intention to repay the debt.

Things to do to avoid a credit card debt discharge objection

1.Stop using your credit cards at least 90 days before filing for bankruptcy.

2.Be honest with your creditors and do not lie in order to obtain the line of credit.

By keeping these few things in mind you can safeguard your debt discharge from credit card companies. For more information on this matter you may contact the law offices of Chang and Carlin. The attorneys at Chang and Carlin, LLP understand how stressful a person gets when he is under financial pressures. Therefore, Chang and Carlin, LLP charges reasonable attorney fees and offers flexible payment options to the people saddled with debt.

Free Debt and Bankruptcy Consultation

Our experienced bankruptcy lawyers in Chicago can help you discharge your credit card debt and get your finances under control. For more information on Bankruptcy law or to schedule a FREE initial bankruptcy consultation, contact Chang and Carlin, LLP today!

Disclaimer: The content provided by Chang and Carlin, LLP is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure services, or Real Estate legal services, call our law firm at 1-866-790-8601 for a Free Legal Evaluation. Chang and Carlin, LLP serves clients in Chicago, Schaumburg, Joliet, and Warrenville.