What you should know about objections from credit card companies

Bankruptcy Lawyer in Sacramento on Credit Card Companies

Credit card companies are the most likely creditors to object to your bankruptcy. Credit card companies faced with a sharp increase in unpaid credit card debt base their objections to the discharge of the credit card debt on the allegation that you committed fraud. Factors that are considered in court to determine fraud are the following:

  1. Amount of charges. Charges over $550.00 that were made within 90 days before filing for bankruptcy are presumed to be fraudulent according to Bankruptcy Code Section 523(a)(C)(1).
  2. Recent charges. If you charge your credit cards shortly before you file for bankruptcy this may suggest fraudulent intent depending on what the charges were made for and on your financial situation.
  3. Small charges. If you used your credit card for multiple small charges to avoid suspicion by the creditor may look like fraud.
  4. Change in charging pattern. If you use your card much more often than you used to just before you file for bankruptcy.
  5. Bad faith. If you obviously knew that you could not repay the charges and were unable to make the minimum payment the bank will argue that you were insolvent ant the time you made the charges.