Case Conclusion Date: 04.11.2007
Practice Area: Bankruptcy and debt
Outcome: objection withdrawn or settled
Description: In bankruptcy, creditors can object to the discharge of a debt or to the entry of the entire discharge. Code Section 523 provides "Exceptions to Discharge" guidelines. The most common objection occurs with the usage of credit cards within a prescribed period of time preceding the bankruptcy filing. The time line includes any usage of credit cards within 90 days of filing the case, or any debt that was incurred with the intent not to repay. This intent can be imputed based on debt incurred with the inability to repay. I have resolved hundreds of adversarial issues, by defending them with a defense of "goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor." (See Â§ 523 (a)(2)(C)(ii)(II). These have also been defended by identifying out-of-state attorneys that have no intent to actually file an action, or by settling them out at 50 cents on the dollar with no interest. To be successful, an attorney should never settle an adversarial complaint without reviewing the defenses. Most objections can be overcome. To date, I have yet to have a creditor secure a non-dischargeability judgment against a client.