So how do you avoid potential problems with the bankruptcy court? First, you should be aware that it’s difficult, time-consuming and expensive for a credit card company to prove fraud. Fraud requires intent, so the credit card company must produce evidence that shows that you knew you were planning on filing for bankruptcy and had no intention of honoring the commitment. Absent written statements from you, that’s pretty hard.
Nonetheless, there are certain types of transactions that the court will consider with increased scrutiny:
Advances and luxury purchases made outside the time frames referenced above may still be non-dischargeable, but the burden shifts to the creditor to prove fraud.
Protect your rights when evaluating the benefits of a bankruptcy filing. For professional and knowledgeable legal counsel with a personal touch, contact our office by e-mail or call us at 856-424-6400. We are available evenings and weekends upon request.
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