As people use credit cards to make payments for items that they are buying, sometimes they overuse their credit card. This will not become a problem if the individual has a way of paying off their debt. There are instances where credit card bankruptcy will have to be declared.
This bankruptcy claim can be disputed by the credit card issuing agency if they feel that you have obtained the credit card by fraudulent means. If the credit card company feels that you are using the card in an unlawful manner they can refuse to discharge your debt.
When the credit card company challenges this debt it becomes a non-dischargeability action. In the non-dischargeability action the credit card issuer will declare that you have obtained your credit card by submitting a fraudulent credit card application. They can also declare that you have received a credit card without any intent to pay any off the debts that you are incurring.
There are many reasons why credit card bankruptcy claims will be challenged. These reasons will include an increased use of your credit card before you file for bankruptcy, or if you have just been issued a new credit card after the credit card company approved your application for the card.
Or maybe large advancements of cash were made just before you filed for credit card bankruptcy. As these reasons can indicate to your creditors that you are not intending to pay off your debts they will be able to prove to the courts that you are planning on defrauding them.
So if you are intending to file for credit card bankruptcy it is best if you don’t use your credit cards for at least 6 months before you file for credit card bankruptcy. The less usage that can be found with your credit cards will validate your claims that you are in financial difficulties.
Before you do file for credit card bankruptcy it is best if you talk the situation over with your lawyer. You can inform your lawyer about your entire financial problems and see the various courses that you have open.
You must understand that once you have filed for credit card bankruptcy your public record will state that you have undergone bankruptcy for bad credit. This means that you will need to prove to various businesses that you are willing to pay the higher credit rates that you can be charged.
While this course of action may seem difficult to contemplate sometimes it is the only way that you can find a breathing space to reorganize your financial affairs. Once you have proved that you are in financial difficulties your credit card bankruptcy filing will let you negotiate with your lawyer and creditors the best way to pay their loans back.
Muna wa Wanjiru is a web administrator and has been researching and reporting on internet marketing for years. For more information on credit card bankruptcy, visit his site at CREDIT CARD BANKRUPTCY
