One of the many questions people have regarding filing for bankruptcy is if credit card companies can fight it or get the case dismissed. Although it is rare, it is possible for a credit card company to challenge a bankruptcy by seeking to dismiss their case. However, it is more common for a credit card company to object to the discharge of a particular debt than to fight an entire bankruptcy case. The only parties more likely to attempt dismissing your whole bankruptcy case is the trustee or another government official.
When Can a Creditor Dismiss a Bankruptcy Case?
Credit card debt can be discharged entirely when you file for Chapter 7 bankruptcy. If you file for Chapter 13 bankruptcy, you must pay a percentage of it and then the bankruptcy wipes out the rest. If you file a Chapter 7 bankruptcy, it is possible for a creditor to ask the court to dismiss your bankruptcy if they think your filing is an abuse of the system. For example, if your income and expenses demonstrate that you should be filing Chapter 13 bankruptcy instead, your case might be dismissed.
A credit card company can also object to the discharge of the debt if they accuse you of fraud. For instance, if they say you lied on your credit card application or incurred debt you knew you couldn’t repay, the credit card company can prevent you from discharging your debt.
The best way to avoid a bankruptcy dismissal is to do the following:
- Be honest when filing credit card applications
- Disclose all income and expenses information when filing for bankruptcy
- Stop using credit cards for at least 90 days before filing bankruptcy
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If you have additional questions regarding bankruptcy, you should contact Huebner Law Firm, PC as soon as possible. We know that dealing with debt and constant calls from creditors can be overwhelming. Our firm is dedicated to helping people get financial freedom as they start a new chapter in their lives. With over 18 years of experience, we guide people through the legal path to debt relief. We are here to help you eliminate debt, keep your most valuable assets, and halt creditor harassment so that you can resolve your financial problems on your terms.
If you need guidance on filing for bankruptcy, contact our Fort Worth bankruptcy attorney today for a free consultation: (817) 576-1889!