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Court finds that woman's debt can be discharged

South Carolina residents may be interested to know that a debtor may be able to discharge credit card debts quickly after acquiring them. This was the ruling of the U.S. Bankruptcy Court for the Northern District of West Virginia in a case against World's Foremost Bank. The bank that issued the credit card contended that the debtor in question didn't have the right to discharge a $7,993 credit card cash advance.

The bank reasoned that the law provided a presumption against a discharge if the debt had been accumulated within 90 days of filing. The law also provided a presumption against discharge if luxury items totaling more than $675 is owed to a single creditor. However, the court ruled that the only luxury purchase was a $420 pair of boots and a computer game.

Other than that, the woman had spent $183 at Kohl's that the court found to consist of necessary expenditures. Overall, the woman had used the credit card in a regular fashion, and her testimony established that she had intended to pay the debt back in time. This was important because a debtor's intent determines whether a debt can be discharged in such a scenario. Therefore, the court court ruled that the obligation could be discharged in a Chapter 7 bankruptcy case.

Debtors who are looking for a fresh financial start may be able to find it through bankruptcy. It may be possible to have credit card or other types of unsecured debt discharged in a few months after filing for Chapter 7. An attorney can outline the eligibility requirements during an overall discussion of debt relief alternatives .

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