Law Office of Ginger C. Cord, PSC. - Bankruptcy
Free Initial Consultation

Local 859-963-2073

Toll Free 800-762-6916

Call Today

Pursue A Bright Financial Future
[an error occurred while processing this directive]
Freedom From Debt Is On The Horizon

Court finds for debtor in bankruptcy case

Kentucky residents may be interested a Chapter 7 bankruptcy case involving a woman who filed her petition after taking a credit card cash advance. The U.S. Bankruptcy Court for the Northern District of West Virginia found that she didn't have to repay $7,993 because the credit card issuer couldn't prove that the women never intended to pay that money back. The bank argued that there was a presumption against discharge under the Bankruptcy Code.

The presumption generally exists if a charge was made within 90 days of the filing. It also exists if a balance for luxury goods of more than $675 is owed to a single creditor. The court held that the credit card issuer failed to prove that luxury items were purchased outside of a $420 pair of boots. It also held that $183 spent at Kohl's could have been for necessary items after a fire destroyed the woman's house.

Overall, the woman's testimony rebutted the claims made by the credit card company. It established that she intended to pay back the balance in the normal course of business and that there was no intent to deceive the bank. Furthermore, the purchases were deemed to be necessary and indicative of normal credit card activity.

Those who are looking for a fresh financial start may wish to consider filing for Chapter 7 bankruptcy. It may allow them to discharge some or all of their unsecured debts without the need to pay anything to creditors. Legal counsel can explain the additional benefits of bankruptcy such as an automatic stay of collection actions.

No Comments

Leave a comment
Comment Information