i) The submitted application for the credit card was fraudulent.
ii) The card was used without the intent to repay the debt, which is a common occurrence.
Transactions Suspect for Card Issuers
There is a high likelihood that any of the transactions listed below will be contested by credit card lenders as part of an Adversary proceeding.
- Insolvency appearing on a newly issued card or set of cards
- Significant cash advances prior to filing for bankruptcy
- Using a credit card while unemployed or without a limit or the expectation that the debt will be repaid is prohibited.
- Habit of using one credit card to pay off another
- Recent use of card for travel or vacation
- Increase in credit card usage preceding bankruptcy filing
- Significant balance at reporting
As a general rule, the longer the period between card use and bankruptcy filing, the lower the likelihood that the card issuer will contest or dispute dischargeability. A dispute for dischargeability based on fraudulent use of the card may only challenge a portion of the credit card balance, such as the $10,000 recently charged to your credit card for a vacation.
What Options Does the Debtor Have Regarding the Non-Dischargeability of Debts?
If you are concerned that your creditors will contest the dischargeability of your bankruptcy-filed debts, you have the following options:
- Delay filing for bankruptcy to allow more time for payments and months to pass so that the debt is elder and less questionable for bankruptcy filing. Experts recommend waiting at least three to nine months before declaring bankruptcy for current debts.
- Settle with any objecting creditor who files a non-dischargeability lawsuit.
Contest the dischargeability suit during the trial.""
" - https://www.affordablecebu.com/