Credit Card Charges by Laid-off Debtor Held to be Reasonable and Dischargeable
Posted By Joseph Tosti on Jun 21, 2010 3:55pm PDT
A Michigan bankruptcy court decision allowed the Discharge of a chapter 7 debtor's credit card debt, even though the credit card was used while the debtor was laid off from his job just before the bankruptcy was filed. The creditor objected to the dischargeability of the debt based on its allegation of fraud and false pretenses.
The court observed that the debtor testified credibly that he had every expectation of returning to work as had always happened in the past. The debt was discharged.