Bankruptcy Discharge

• During a bankruptcy case most credit card debts will be discharged, which means they do not have to be repaid.
  
  

Challenges by Credit Card Companies

• Credit card companies can challenge discharge of debts they believe were fraudulently incurred through what is sometimes termed a nondischargeability action. This most commonly occurs because the debtor allegedly incurred debt without the intent to repay.
  
  

Warning Signs that a Debtor is Incurring Debts Without Intent to Repay

• Some actions that could be perceived as indicating fraud include incurring debts without a source of income, a pattern of increasing borrowing right before filing for bankruptcy, and opening new credit cards before filing for bankruptcy.
  
  

Considerations

• Credit card companies can challenge the discharge of debts in both Chapter 13 and Chapter 7 bankruptcy cases.
  
  

Credit Card Cancellation

• If you maintain a zero balance, there is a chance a company may allow you to keep your credit card after filing for bankruptcy.