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Credit Card Debt and Bankruptcy: When You May Want to Wait to File

Posted By Allmand Law Firm, PLLC || 4-Dec-2013

How is Credit Card Debt Handled in Chapter 13 Bankruptcy?

Credit card debt is one of the most common forms unsecured debts to be discharged in bankruptcy. If you used your card recently for large purchases it is possible they may be reviewed to make sure they can be successfully discharged. This is due to certain charges that may not be eligible for elimination, and in this case you may want to wait to file your case.

Credit card companies can dispute big charges made on the card if you decide to file too soon. If you delay your filing you may be able to avoid such accusations. Unfortunately, some debtors have been known to make large extravagant purchases within days or weeks of filing for bankruptcy. This can be considered fraudulent if you know you intend to file for protection when such purchases are made.

Large purchases (such as luxury services and goods) completed within 90 days of filing or cash advances (over $900) made within 70 days of filing may seem fraudulent to the court. It can give the impression the debtor had no intentions of repaying the debt.

In many situations the above circumstances may not apply but it can be helpful to review charges you may have concerns about with your bankruptcy attorney in Dallas or Fort Worth. If you have made payments on the card in the past and used it for necessary living expenses, it may be easier for debts to be discharged and the credit card company may find it more difficult to prove any fraud was committed.


Categories: Credit and Bankruptcy
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