As a bankruptcy attorney in the Houston federal court I see this exception to the discharge rule most often come into play in two more specific subcategories. These are:

1. consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and
2. cash advances aggregating more than $750 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable.

Are all debts incurred within 90 days presumed nondischargeable?

No, the key term is “luxury goods or services.” The bankruptcy rules explain “luxury goods or services” does not include goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor. If your debt is incurred within 90 days of filing but is not for luxury goods or services then your bankruptcy attorney in Houston may help you avoid the presumption of nondischargeability.

What can you expect if you have charges within 90 days or cash advances within 70 days?

It is a growing trend among credit card companies to request the Houston Bankruptcy Court rule these debts nondischargeable in an adversary proceeding. This strategy often works when a person is going through the bankruptcy process alone and does not know how to defend himself or herself from the credit card company, or even worse, ignores the adversary proceeding entirely. Often times in those situations the debt is ruled nondischargeable and it follows the bankruptcy filer even after their other debts are discharged. The presumption is on their side unless your bankruptcy attorney can defeat or rebut the presumption.

A Woodlands Bankruptcy Attorney at your side can help you get the discharge you are entitled to. Don’t just file for bankruptcy, get meaningful debt relief at the end of your case.

LoneStarBankruptcy.com provides the latest news and information on Chapter 7 and Chapter 13 bankruptcy in the Southern District of Texas. The Federal Bankruptcy Court for the Southern District of Texas covers many communities including: Houston, Conroe, The Woodlands, Montgomery County, and Harris County. If you need legal assistance with a personal bankruptcy matter speak with a local bankruptcy attorney today.

No related posts.

Mr. Crandall decided to do his own bankruptcy. He filed the initial petition and thought he was all set, how hard can it be? Soon after Mr. Crandall’s Houston bankruptcy petition, Discover Card filed an adversary proceeding objecting to having the debt he owed them discharged.

Mr. Crandall did nothing, thinking all he had to do to get his discharge was file the first bankruptcy petition.

With Mr. Crandall not protecting his rights, Discover Card submitted enough evidence to obtain a default judgment preventing the discharge of the credit card debt. At the end of the day, not having a bankruptcy attorney probably cost Mr. Crandall a lot more than having an attorney.

The Crandall case is important because with the help of a Houston Bankruptcy Attorney Mr. Crandall could have fought the default judgment matter and may have had the $8,000 credit card debt discharged as he desired. Do not make the same mistake Mr. Crandall did. Speak with a Conroe Bankruptcy Attorney today.

No related posts.

Alimony, maintenance, and child support are common concerns in a bankruptcy procedure. The Bankruptcy Code provides that a discharge is not available for any debt

to a spouse, former spouse, or child of the debtor and not of the kind described in [523(a)(5)] that is incurred by the debtor in the course of a divorce or separation or in connection with a separation agreement, divorce decree or other order of a court of record, or a determination made in accordance with State or territorial law by a governmental unit.

As a general rule alimony, support, and maintenance debts incurred through a divorce proceeding will not be discharged. However, in certain cases the Bankruptcy Court may apply a different interpretation of the law to reach a different result. Speak with a Conroe Bankruptcy Attorney if you need legal assistance.

Related posts:

1. Is Your Debt Presumed Nondischargeable?