There are two reasons why a bankruptcy court might refuse to discharge credit card debt: (1) falsifying information to obtain a credit card, or (2) fraudulently using a credit card. If you commit either of these actions, your case will be dismissed and your debts will not be eligible for discharge. The best way to prevent this from happening to you is to familiarize yourself with the laws regarding debt accumulation and debt discharge eligibility.
Creating False Information
It is prevalent for individuals to provide false information on credit card applications. Perhaps they have been repeatedly denied credit or cannot secure a favorable credit arrangement. In either instance, providing false information on a credit card application can prevent the dischargeability of debts in bankruptcy. Falsifying information can take many forms, including exaggerating one's income or assets, exaggerating one's employment status, and using a false social security number.
Many individuals believe they are not at risk of being discovered if their creditor did not notice the false information. However, when you register for bankruptcy, your financial information is thoroughly examined. In addition, the bankruptcy procedure includes a Meeting of Creditors, where your creditors can attend and dispute any information. With your creditors present in the room where bankruptcy officials examine your personal records, it is highly likely that your deceit will be exposed. Any attempt to conceal information will likely be discovered, jeopardizing your opportunity for a debt discharge.
Fraudulent Charges
For debts to be eligible for debt discharge, bankruptcy laws take a stringent stance on how they were acquired. Perhaps one of the most frequent errors made by debtors is filing for bankruptcy based on fraudulent allegations, which is not the type of fraud that typically comes to mind. The purchase of non-essential items, exceeding the credit limit, nonpayment after large purchases, and recent charges just prior to filing are viewed as fraudulent by bankruptcy courts. The court will not discharge any debts acquired within 90 days of filing that exceed $500, or any cash advances acquired within 70 days of filing that exceed $750. ""Many individuals do not realize that their actions constitute bankruptcy fraud until it is too late.
" - https://www.affordablecebu.com/
