While most credit card debt is dischargeable in a
Chapter 7 bankruptcy, there are occasions when a judge may require a debtor to repay a lender.
The most common reason for judges to require repayment of credit card
debt in Chapter 7 bankruptcy is if the debtor committed fraud. In other
words, if the judge determines that the debtor charged up a high balance
on their card without any intention of paying it back.

Creditors who suspect fraud from an individual filing for bankruptcy can
have the judge review the case for evidence of this accusation. One of
the telltale signs is the incurring of large credit card charges after
consulting with a Chapter 7 bankruptcy lawyer, or finding that the individual’s
bankruptcy fees and expenses were paid with a credit card. Judges will
also look at credit transactions in the months leading up to the bankruptcy
filing. Often, people mistakenly assume that since they are already going
to file for bankruptcy, they can safely make huge purchases without worrying
about having to pay them back. However, this too is considered fraudulent
behavior, which may result in the debt not being eligible for a discharge.
If the judge finds that you made no attempts at repayment on purchases
made just before a bankruptcy filing, you may end up still having to pay
the debt, which defeats the entire purpose of a bankruptcy filing.

Fraud is a very serious matter when it comes to bankruptcy. To avoid having
your Chapter 7 bankruptcy complicated or even denied due to fraud, it
is best to avoid any use of your credit card once you begin considering
Chapter 7 bankruptcy. It is in your best interests to speak with a Dallas
bankruptcy lawyer at Allmand Law Firm, PLLC about the bankruptcy process
and how it can benefit you. We are here to guide you through the process
and help you avoid any potential complications.

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Initial case evaluations are provided free of charge, so contact us today to take your first steps toward financial freedom.