Can Credit Companies Fight My Bankruptcy?
When it comes to filing for bankruptcy, there are a lot of questions that you may have, and one of the most common questions is: Can credit companies fight my bankruptcy, or even get it dismissed if I file for one?
While a credit company challenging a bankruptcy filing and getting a case dismissed is an increasingly rare occurrence, it is a true possibility. However, what is more common than a credit company putting forth a challenge of a bankruptcy for the purpose of dismissing the case is a company putting forth an objection of certain discharged debts. A lot of the time challenging specific discharged debts is more important for the credit companies than dismissing the entire bankruptcy proceedings.
When it comes to having a bankruptcy filing disputed for the purpose of having it dismissed, the more likely party to do so is a trustee, or various other government officials.
When Can A Bankruptcy Case Be Dismissed By A Creditor?
It is important to know the distinction between a Chapter 7 bankruptcy filing and a Chapter 13 filing when it comes to debt.
For a Chapter 7 bankruptcy, the entirety of your credit card debt is able to be discharged. However, if you are filing for a Chapter 13 bankruptcy, you will receive a percentage of your debt that must be paid off, while the rest of it is wiped out.
When it comes to the dismissal of a Chapter 7 bankruptcy case a creditor may ask the overseeing court to dismiss the bankruptcy if they believe the situation surrounding your filing constitutes an abuse of the system. An example of this kind of challenge would be if the combination of your income and your expenses show that you really should be filing for a Chapter 13 bankruptcy, rather than a Chapter 7. If this is proved to be the case, your bankruptcy case may be dismissed.
Another scenario where a credit card company may fight the discharge of certain debts comes when a credit company accuses you of fraud. This may occur if the credit card company says that you provided false information on your application, or if you incurred debt that you had no intent on repaying, or knew that you would not be able to repay. In either of these situations, the credit company may be able to prevent the bankruptcy filing from discharging your debts.
How To Avoid Bankruptcy Dismissals
Because it is possible for credit companies to have your bankruptcy dismissed, there are some actions you can take in order to best avoid having your bankruptcy case dismissed, whether it be a Chapter 7 filing, or a Chapter 13 filing. The following are some methods to help your bankruptcy case stick:
The truth: Make sure that when you are filling out credit card applications you are being completely honest. This will protect you in the long-term if you need to file for bankruptcy.
Disclose all information: When you are filing for bankruptcy, it is important that you disclose all of your income and expense information. Any income or expenses hidden can cause serious problems for yourself later.
Credit card use: It is important that you stop using your credit cards at least 90 days before you begin filing for bankruptcy.
Successful Bankruptcy Claims
If there are any questions or concerns you have when it comes to the likelihood of your bankruptcy claim being fought, countered, or dismissed, there are bankruptcy attorneys you can speak with. These attorneys can help guide you through the process of deciding if bankruptcy is the right call for your current situation, and – if so – which form of bankruptcy is best for you.
Dealing with debt, constant calls from creditors, and the burden debt can put on your shoulders can be overwhelming. Getting help from an attorney can ease some of those burdens, as you will know you are giving yourself the best chance to have your bankruptcy claims stand up to any challenge for call for dismissal.
Making sure you have all your paperwork ready and in order is a good first step to making sure you are able to be successful with a bankruptcy claim. But, if you have been honest in your filings, and have disclosed all of your income and expenses, you will have a good chance of having your bankruptcy claims standing up against any challenges to have your file dismissed, or having certain debt dismissals sought to be wiped out.
Don’t Be Dismissed
While credit companies can fight your bankruptcy and get it dismissed, it is important to keep in mind that making sure you file for the appropriate bankruptcy for your situation can help make sure your case is successful, or that credit card companies are unable to successfully challenge, or dismiss specific charges, or debts.
If you are interested in finding the best bankruptcy attorney in Florida that can check all of the important boxes, contact BrunerWright, P.A. today. We are a team of bankruptcy professionals that can help you through the process of your bankruptcy. We want to ensure that you can enjoy a fresh start with your finances.