Legal Question in Bankruptcy in California
How likely is it to have the debt not discharged in Chpt 7
We filed bnk in April 07 and two cards had charges from Jan and Feb. My attorney said it would be ok and we didnt need to wait until June like I asked now the two are disputing the discharge and asking for a letter of explanation from me. I was primary wage earner until Jan 07 when the Real Estate market came to a stop and have had no income since that time my spouse is now main support at 30k a year for 5 in family and I am working odd jobs to supliment this is our explanation but my attorney will not return calls or emails about his opinion if these debts will be reinstated which would bury us financially
1 Answer from Attorneys
Re: How likely is it to have the debt not discharged in Chpt 7
I strongly recommend to debtors that they should not use their credit cards during the 90 days prior to filing for bankruptcy, or longer if possible.
Bankruptcy law allows a credit card company to object to you receiving a discharge of that debt if they can prove the debt was incurred fraudulently. Consumer debts owed to a single credit card company totaling more than $500 for luxury goods or services that were incurred within 90 days before the bankruptcy filing date are presumed to be fraudulent if the creditor files legal action to object to you receiving a discharge of these debts.
The same presumption of fraud exists for cash advances totaling $750 or more during the 70 day period prior to the bankruptcy filing date.
Will the creditor file an objection to your discharge? Perhaps, but they only have 60 days to do so from the date of your Meeting of Creditors. If they do, you can always negotiate a settlement.
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