Debtors overwhelmed with credit card debt may look to file bankruptcy to help them get a fresh start. While there are qualifications to being eligible to file there is also the possibility of a credit card company protesting or blocking your petition. The chances are relatively small and there are measures you can to reduce the risk of the action being carried out when you start the bankruptcy process.
When the bankruptcy laws were revised in 2005, there was a provision created that gives credit card companies a right to block your petition under certain circumstances. If you have misused your credit card to buy items that are not considered a necessity, the credit card company could basically say that you don’t deserve to file bankruptcy. So what can you do to reduce the risk of this argument?
Credit card companies may choose to review your purchase history and dispute charges from a year up to the date you file bankruptcy. If you use your credit card avoid buying luxury items or making purchases that are not necessary. Necessary purchases would include groceries, utility payments, and items needed for daily living.
Keep receipts and statements to track purchases. This allows you to have proof that your purchases were for essential items. You can claim a charge back on the credit card if you brought something that is non-essential. Questions or concerns should be reviewed with a bankruptcy attorney.