If you file for bankruptcy, your credit card company (alongside other creditors) is automatically informed of the case and has the chance to object to your discharge. While a bankruptcy discharge means that the company may at least get part of its money, it may object to the discharge under certain conditions. For example, a company may raise objections if you used its card to:
Pay Non-Dischargeable Obligations
Not all debts are dischargeable via bankruptcy; there are debts that you will still have to shoulder such as child support, alimony and student loans. If you use a credit card to pay any of these non-
Buy Luxury Items
Creditors may also object to your credit card debt if you incurred it on luxury items. Luxury items are those that you don't need to support yourself in your daily life. For example, you don't need a cruise vacation or the latest high definition television set to support your daily life. Therefore, if you used your credit card to book a weekend at a ski resort, then you can expect your credit card company to object to your discharge.
The creditor is likely to succeed if
- Was made within a certain number of days
- Is above a minimum dollar amount
Get a Cash Advance
You will also have a problem with your discharge if you used it to get a cash advance. Again, for this objection to be considered, you should have made it in the recent past, and it must be of a certain aggregate value. This is because it isn't easy to
Therefore, if you are planning to file for a bankruptcy in the near future, or you have at least entertained the thought, you should be very careful with your credit card spending. You don't want these seemingly "small" issues to derail your discharge process. To learn more, contact a business like Wiesner & Frackowiak, LC.