Can a Credit Card Company Fight My Bankruptcy?


Credit card companies play a significant role in bankruptcy proceedings. As creditors, they have a vested interest in the outcome of a bankruptcy case. When a debtor files for bankruptcy, these companies stand to lose the money owed to them; so, they often take active steps to protect their interests.

Credit card companies, like other creditors, receive a notice when a borrower files for bankruptcy. They are then prohibited from making any attempts to collect the debt due to the automatic stay provision in bankruptcy law. This means they can't call you, sue you, or send you letters demanding payment. However, they do have the right to challenge the discharge of the debt in certain circumstances.

Credit Card Companies Can Challenge Bankruptcy Filings

While it's not common, a credit card company can challenge your bankruptcy filing. They might do this if they suspect fraudulent activity, such as if you ran up a lot of charges right before filing for bankruptcy. However, they must file a complaint in the bankruptcy court, and it's up to the court to decide whether the debt is dischargeable or not.

It's important to note that the process of a credit card company contesting a bankruptcy is complex and can lengthen the bankruptcy proceedings. If a credit card company successfully challenges the discharge of a debt, the debtor may remain responsible for that debt even after the bankruptcy case is closed. This underscores the importance of having a skilled bankruptcy attorney to guide you through the process and protect your rights.

Situations Where Credit Card Companies Might Challenge Bankruptcy

There are certain situations where a credit card company might challenge your bankruptcy. One common scenario is if you've made large purchases or taken out significant cash advances on your credit card shortly before filing for bankruptcy. This could be seen as an attempt to defraud the creditor, and the credit card company might argue that this debt should not be discharged.

Another situation is if your credit card lender alleges that you provided false information on your credit card application. If the credit card company can prove this, they may be able to prevent the discharge of that debt.

The Outcome If a Credit Card Company Successfully Fights Bankruptcy

If a credit card company successfully challenges your bankruptcy, the result could be that some or all of your credit card debt is declared non-dischargeable. This means that you would still be responsible for paying this debt even after your bankruptcy case is closed.

The specific outcome will depend on the details of the case and the judge's decision. However, it's important to note that successfully challenging a bankruptcy is not easy for credit card companies, and it's not a common occurrence. Most people who file for bankruptcy are able to discharge their credit card debt without any issues.

How to Respond if a Credit Card Company Challenges Your Bankruptcy

If a credit card company challenges your bankruptcy, it's important to respond appropriately. This isn’t a situation to handle on your own; you should immediately contact your bankruptcy attorney. They can guide you through the process and represent you in court.

You may need to provide additional evidence or testimony to counter the credit card company's claims. Remember, the burden of proof is on the credit card company, and they must prove that there is a valid reason why the debt should not be discharged.

A Bankruptcy Attorney Can Protect Your Rights

A bankruptcy attorney plays a crucial role in protecting your rights during the bankruptcy process. They can guide you through the complex legal proceedings, ensure that all paperwork is completed accurately and on time, and represent you in court if necessary.

If a credit card company challenges your bankruptcy, your attorney can defend you against these claims and work to ensure that your debt is discharged. They can also provide valuable advice and guidance on managing your finances post-bankruptcy.

Learn more about how our bankruptcy lawyers at Buchalter & Pelphrey Attorneys At Law advocate for our clients by contacting us today.