Credit Card Fraud?

[vbros1gfriend]

What is the name of your state? Ohio

A girlfriend and her husband have decided to file a Chapter 13 bankruptcy in order to keep their house. I am concerned because she has gone completely nutso in maxing out all of her credit cards before she files.

Would these charges be included in a Chapter 13 or can she get in trouble for credit card fraud?

I have never filed for a bankruptcy - but her behavior is scaring me. And - if her debtor are included in this bankruptcy - doesn't tax payers have to pay for such situations in the form of tax hikes on retail merchandise?

 

[AttorneyOney]

To answer the last question first, credit card and other lenders charge risk-based interest rates to cover losses from anticipated bankruptcies. They have to do this to make up the losses that are inevitable when they so vigrously push credit onto people who can't afford it. The idea that taxpayers or other citizens make up the losses is a myth -- credit card companies are making extravagent profits and can easily absorb them.

Another myth about bankruptcy is that people can easily game the system and get away with fraud. Reading sections 523(a)(2) and 727(a) should put your mind at ease about this. Note, too, that when Senator Hatch was speaking about abusive debtors on the Senate floor not long ago, he neglected to mention that all of the debtors whose cases he described were denied their discharge. Current law is already adequate to deal with fraud and other abuses.

 

[Ladynred]

I agree.. but Sen Grassley (and all the other bribed Republicans) think ALL bankruptcy filers are deadbeats who just don't WANT to pay their bills ! These politicians who have probably never experienced any REAL financial hardship in their entire lives have the nerve to call an awful lot of people 'deadbeats' !!

 

[tommy 522]

congress is deadbeats!

Ladynred ! YOU ARE SO CORRECT! NOT ALL OF US ARE DEAD BEATS > WE DO HAVE MEDICAL HARDSHIPS THAT CAUSE US TO FILE BANKRUPTCY! BUT WE ARE LABLED DEAD BEATS ANYHOW!!!!