Objections to Bankruptcy - When Creditors Fight Your Discharge

Objections to Bankruptcy - When Creditors Fight Your Discharge """Bankruptcy objections are uncommon, but it's essential to know whether a creditor can object to your discharge when you file for Chapter 7 bankruptcy.In chapter 7 cases, a discharge is not an absolute privilege. A creditor may file an objection within the time limit specified by the court when the bankruptcy petition is filed through what is known as a ""adversary proceeding.""""A creditor may object to the discharge of its debt under Section 523(a)(2) of the Bankruptcy Code, which lists several non-dischargeable debt types. They are (generally, and only with regard to unsecured creditors): debts incurred for money, property, or services, or an extension, renewal, or refinancing of credit, to the extent obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor's or an insider's financial condition; debts owed to a single creditor and totaling more than $500 for luxury goods or services incurred by an individual debtor on or within
If you file for bankruptcy within ninety days of the last time you used a credit card, you likely knew that the individual debt could be contested. Therefore, the more prevalent issue is that the debt was incurred through fraud.As in the rest of the world, bankruptcy fraud must be proven; it cannot merely be asserted. Therefore, the creditor must demonstrate that you knew or had reason to know that you had no intention of repaying the loan when you took it out.Three factors that a bankruptcy attorney will consider when evaluating a dischargeability claim are:
How recent was your most recent credit card transaction? If you have used your credit card over the past 12 to 18 months, would a reasonable person have concluded that you had a reasonable expectation of repayment? If so, the likelihood of a challenge is diminished; and
If you were truthful about your employment, income, and expenses on your credit card application, the likelihood of a challenge is diminished.
It is extremely unlikely that a creditor will object to your discharge unless you acted in a manner wildly inconsistent with your prior credit card use. Still, it is prudent to discuss your alternatives with your attorney prior to filing for bankruptcy.""

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