Bankruptcy: One Option for Overwhelming Credit Card Debt in Illinois

BANKRUPTCY: ONE OPTION FOR OVERWHELMING CREDIT CARD DEBT IN ILLINOIS

Countless people in Illinois currently find themselves buried under mountains of credit card debt. Getting ahead of this debt is even more difficult given that many rely on credit cards for everyday purchases since they are burdened financially given the current economic climate - not to mention the high credit card interest rates. While some people with large credit card debt in Illinois pursue relief options such as debt consolidation or negotiating with the credit card companies, many have determined their best option is to discharge the credit card debt in an Illinois bankruptcy court.

Discharging Credit Card Debt in Illinois

Following an Illinois Chapter 7 bankruptcy, a creditor generally will not be able to pursue a debtor for credit card debt - this is commonly known as "discharging" the debt during bankruptcy. However, the bankruptcy code expressly states a debtor cannot discharge debt that was obtained by "false pretenses, a false representation or actual fraud."

In order for a creditor to except credit card debt from discharge in an Illinois bankruptcy court they can prove fraud by showing either that the debtor made an intentional misrepresentation upon which the creditor justifiably relied, or, the debtor perpetrated a positive fraud against the creditor.

In addition, proving fraudulent intent with credit card debt is usually a question of whether the debtor intended to repay the debt or not, and is based on a subjective standard at the time the debt was incurred. Bankruptcy courts in Illinois have in the past utilized a test developed in the Ninth Circuit as guidance for determining fraudulent intent - commonly known as the Dougherty factors.

These 12 factors, which are neither exclusive nor dispositive, include:

The length of time between the charges made and the filing of bankruptcy
Whether or not an attorney has been consulted concerning the filing of bankruptcy before the charges were made
The number of charges made
The amount of the charges
The financial condition of the debtor at the time the charges were made
Whether the charges were above the credit limit of the account
Whether the debtor made multiple charges on the same day
Whether or not the debtor was employed
The debtor's prospects for employment
Financial sophistication of the debtor
Whether there was a sudden change in the debtor's buying habits
Whether the purchases were made for luxuries or necessities

For example, say a couple named Blake and Crystal have credit card debt in the amount of $20,000. They are unable to pay their bills so they consult with an attorney to see what their options are, where they learn that credit card debt is dischargeable. They then go out and buy many luxury items such as jewelry and clothes; amounting to an additional debt of $10,000. Under these circumstances, it is likely that the last $10,000 charged by Blake a Crystal will not be discharged by filing for bankruptcy - although the original $20,000 may still be dischargeable.

Under the vast majority of circumstances credit card debt will be able to be discharged by honest debtors. Bankruptcy is meant as a fresh start for those who find themselves unable to pay their bills - regardless of whether you have a large or small income. If you currently find yourself stressed beyond reason with insurmountable debt - credit card or otherwise - contact an experienced bankruptcy attorney in your area today to learn what option is best for you.

Continue Reading Read Less

Hear From Our Happy Clients

Reviews & Testimonials

At Atlas Consumer Law, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

I was so stressed out, found Atlas Consumer Law & gave them a call!

I had absolutely NO exceptions going forward with my lawsuit against a company that harassed me for payment! I was at the ...

Pam S.
So Helpful & Responsive!

Everyone at Atlas was so willing to help and so responsive. I'm so grateful for the work they put in on my case! Would highly ...

Stephanie M.
Results Fast!

THEY GOT RESULTS FAST FAST FAST!!!

Jake B.
Can Do Attitude All the Way!

Atlas consumer Law is amazing and they have the CAN DO attitude and will do anything to get the job done.. I highly recommend ...

Donnie P.
Thank you for educating me about my rights as a consumer!

The Atlas Consumer Law Group is Awesome. They promptly took care of my issue with a creditor who tried to ignore my rights as ...

Belinda W.
Absolutely Amazing!

I am absolutely AMAZED at this law group! I started a case in March and got it solved in early May! The debt collector was ...

Aline G.
Atlas Consumer Law Goes Above & Beyond!

Atlas helped us within 6 months more or less and they were an awesome team. I would definitely recommend Atlas Consumer Law ...

Llyod G.
Atlas Consumer Law is on Your Side!

When you need the law on you side call Atlas!

Arlene B.

View All Reviews

Stay In The Know

Visit Our Blog

Why Choose Atlas Consumer Law?

Secured a Fresh Start to Thousands of Consumers
Assisted Thousands with Errors on their Credit Reports
Secured Millions of Dollars in Recovery for Our Clients
Eliminated Over A Billion Dollars of Debt for Our Clients

Contact Atlas Consumer Law Today!

Talk to the leading law firm in the country about your rights for free! Fill out the form below or give us a call at (312) 313-1613 and we would be happy to give you the answers you need to make informed decisions for yourself and your family.

First Name
Please enter your first name.
Last Name
Please enter your last name.
Phone
Please enter your phone number.

This isn't a valid phone number.
Email
Please enter your email address.

This isn't a valid email address.
Are you a new client?
Please make a selection.
How can we help you?
Please enter a message.
By submitting your information or contacting Sulaiman Law Group, Ltd., and/or Atlas Consumer Law ("the firms"), you consent to receive automated communications, including autodialed calls, pre-recorded messages, texts, and emails from the firms, their agents, assignees, affiliates, or any affiliated parties. This consent applies to all contact details you provide, as well as to future communication technologies. Using the internet or other methods to communicate with the firms does not establish an attorney-client relationship; therefore, avoid sharing confidential information through these channels. Please note that all calls may be recorded for quality assurance and training purposes. To opt-out of communications, reply with "STOP" to any text message, click the "unsubscribe" link in any email, or send a written request to the firm's mailing address. Your continued interaction with the firms signifies your acceptance of these terms. You agree to indemnify the firms against any claims arising from the use of these communication methods. The firms are not liable for any communication failures. Disputes arising under this agreement are governed by Illinois law, with jurisdiction exclusively in the courts of DuPage County, Illinois, or the nearest federal district court. These terms are subject to change, and your continued communication with the firms implies your agreement to any such changes. If any part of this agreement is found invalid, the remaining sections will remain effective. This agreement is in compliance with the Telephone Consumer Protection Act (TCPA) and applicable state laws.