Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Can a Creditor Stop the Discharge of your Credit Card Debt?

If you are planning to file a Missouri or Illinois Chapter 7, you are probably relieved to have found a solution to your credit card debt, among other things. However, before you rack up more credit card debt in the hopes that it too will be discharged, you may want to think twice.

A creditor can actually challenge your ability to discharge credit card debt if he or she thinks that you charged the card in a fraudulent way. What does this mean? Well, in the context of a bankruptcy, fraudulent  use of a credit card includes:

•    Obtaining the card under false pretenses
•    Spending money knowing you are on the eve of filing bankruptcy
•    Charging the card knowing you have no ability or intent to repay the creditor

How would a creditor know that you had spent money knowing full and well that you did not intend on repaying it? A creditor wouldn’t necessarily know what your thoughts were, but they could identify some behavior consistent with that notion, including:

•    Taking cash advances a few months before filing or purchasing luxury items
•    Making charges after retaining a St. Louis bankruptcy attorney
•    Spending more money than you could possibly pay back

Doing any of these things within 90 days of filing a Missouri or Illinois Chapter 7 is dangerous. It isn’t a good idea to engage in any of this behavior. Make sure that when you need a solution to credit card debt, there is one that is available for you.

Wondering what else bankruptcy can do for you? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out.