Legal Question in Bankruptcy in New York
Bankruptcy - debt that can not be discharged
A year ago I tapped out all 12 of my credit cards at the same time to pursue a business venture, approximately 100,000 USD. Before this, I had taken out 4000 here and 8000 there and paid such debt back over a period of months. I used 40,000 or so of that money to pay back student loan debt and the rest I used to fund my business (futures trading). I did not buy anything with these credit cards; the cards allowed me to transfer money directly to my bank account. The business failed and I lost every dime of that money. I knew of the possibility of failure but now after having been through it, I am worried that this may be looked upon as fraud? I made the minimum payments to all credit cards faithfully for 7 months straight. I was hoping income from the business would allow me to pay the debt back in a couple of years but it did not work out that way, unfortunately. Will the credit card companies try to accuse me of fraud? I have no assets whatsoever. This deeply worries me since I am hoping that I will be able to start new and if the debt is not discharged then I will be unable to turn over a new leaf so to speak. These credit cards offered me the credit and I thought I could use that credit to sustain my own source of income.
3 Answers from Attorneys
Re: Bankruptcy - debt that can not be discharged
Thank you for your inquiry.
Based upon your initial descrition, what you did is not tantamount to fraud.
I am a bankruptcy atty with 20 years expereience in the field. I have represented a number of "day traders" in the past and we have successfully prosecuted their Chapter 7 cases.
If you would like to schedule a free no obligation consultation, please contact me at your convenience.
My closest office is located in Deer Park.
Richard S. Feinsilver
Re: Bankruptcy - debt that can not be discharged
It is not possible to provide an absolute answer based on the limited type of information provided in these postings. The outcome in your situation will depend upon the specific facts of your situation and the type of evidence that the credit card companies have to support any nondischargeability and/or denial of discharge allegations and evidence that you have to support your defenses. Obtaining money, or refinancing debt, by false pretenses, a false representation or actual fraud is grounds for nondischargeability (i.e., that the debt get excepted from discharge/not wiped out in your bankrutpcy). The courts have developed specific tests to determine what showing the creditor needs to establish to provide its case.
You need to consult with a competent bankruptcy attorney that practices regularly in the court in the district where you would be filing.
Check our website for additional information regarding bankruptcy at:
www.starrandstarr.com.
Feel free to contact me for a no-obligation initial consultation at 8888678165.
Nothing in this response to your posting on Law Guru is intended or should be considered as legal advice to your specific situation. Our posting is intended to provided general information of interest to the public. Facts relevant to your situation and not disclosed in your posting may affect your specific legal rights and remedies.
Best regards,
Re: Bankruptcy - debt that can not be discharged
You May file for Bankruptcy to get rid of all of your dischargeable debts. The only way for your creditor to prevent you from discharging your debts is if they file an adversary Proceeding claiming that you committed fraud in obtaining this credit.
I have substantial experience in defending these adversary proceedings.
Please review my website for information on this area.
Jacob Silver
Attorney At Law
1225 Franklin Avenue
Suite 325
Garden City, NY 11530
www.lidebtlawyer.com
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