Legal Question in Bankruptcy in Pennsylvania

Credit Card Discharge

If I have recently consolidated a great deal of credit card debt onto a new credit card because it offered a good consolidation promotion, would it still be dischargeable in a Chapter 7 even though quite new?? OR

What about consolidating onto a credit card that I haven�t had had a balance on in some time, but was recently offered a great promotion as well?


Asked on 8/24/04, 5:05 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: Credit Card Discharge

Generally, obtainment of credit without the intention or the ability to repay it can constitute fraud and is capable of being excepted from the discharge. However, I have never seen a creditor take that position regarding balance transfers. They reviewed your credit report prior to approving the transfer and knew what it was for. Moreover, at least one court has held that such transfers, since not used for your personal benefit, cannot be fraudulent.

I submit that if you are unable to pay the bill, and you otherwise qualify, it makes sense to file and see what the creditor does. I would be surprised if they raise the issue.

I trust this answers your questions, but feel free to call or E-mail me on a free initial basis.

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Answered on 8/25/04, 11:46 am


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