If you are thinking about filing for bankruptcy, you probably have countless questions. One of the many questions people have regarding bankruptcy is if credit card companies can fight or dismiss their case. Our Los Angeles bankruptcy attorneys explain whether creditors or collection agencies can challenge your bankruptcy case.
Creditors Challenging Bankruptcy Cases
Although it is rare, a credit card company can challenge a person’s bankruptcy by seeking to dismiss their case. It is more common for a credit card company to object to a particular debt discharge than to fight an entire bankruptcy case.
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 (to continue making monthly payments), your case might get dismissed. A credit card company can also object to the discharge of the debt if fraud was committed. For instance, if you lied on your credit card application or incurred debt you knew you couldn’t repay, the creditor can challenge your case and make you pay.
How Can I Avoid a Challenge From the Creditor?
The best way to avoid bankruptcy dismissal is by being honest when you apply for bankruptcy. You should disclose all your income and expenses, plus stop accumulating unnecessary debt at least 90 days before filing bankruptcy. Filing for bankruptcy after reckless spending could get your case dismissed. The creditor could argue that you didn’t intend to pay off the debt you were accumulating only a few months before.
If a creditor is challenging your bankruptcy case, our Los Angeles bankruptcy attorneys are here to help you. Call us today at (800) 996-9932!