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Reasons Your Bankruptcy Claim May Be Denied |
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Although you are able to file bankruptcy, your creditors may react by asking the court to deny your discharge because they believe you may have been fraudulently using your accounts. This is usually when a creditor believes that you have used your credit limit while knowing that you planned to file bankruptcy -- even if you did not know it when you first got the card. There are certain criteria that the judge may use to determine whether or not you may have fraudulently used the accounts. These criteria are outlined below.
If you max out your cards and then file bankruptcy soon after, the judge may determine that you did this intentionally and can deny your bankruptcy request. This means that if you've been using your cards recently and have decided to file bankruptcy, you may want to wait as long as possible before you file and do not use your cards in the meantime. You should also continue to make your minimum monthly payments during this time. If you saw an attorney and have used your credit cards after your meeting, that can be a strong case for a judge to deny your bankruptcy claim. The best solution for anyone who thinks they may consider bankruptcy is to stop using your credit cards. This way it will be harder for creditors to prove that you intentionally used your cards when you knew that you wouldn't be able to pay the debt back. If you are charging high priced items and you are unemployed or have a low-paying job, the judge may determine that you were aware that you would not be able to pay the debt on the accounts and that is a good reason to deny your bankruptcy request. If the charges were made for high priced items, such as electronics and expensive clothing, this will be even more ammunition against you. There may be other criteria used by the judge, to determine whether or not he feels that you spent the money with the intent to file bankruptcy, depending on the individual judge and where you live. For honest folks (not career criminals), the question to be determined will be this: did you charge items to the card(s) knowing that you likely would not be able to pay it back? This may catch some people up and put them in a corner if they were using their credit to float them after a layoff and had extreme difficulty finding another job -- which is usually a time when people turn to their available credit. For these reasons, finding a stellar bankruptcy lawyer who knows the laws well and will be able to argue your case flawlessly is important. A lawyer who knows what they are doing will be able to help ensure that you get your discharge and also help you with any questions you may have along the way. Finding the best representation should be the most important part of your bankruptcy journey. Otherwise, you may be stuck drowning in debt with no way to try and get a fresh start. |
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