Dollar Amounts Changed: Presumption of Fraud for Credit Card Charges and Cash Advances
In Chapter 7 bankruptcy, certain credit card debts are presumed to have been incurred through fraud, and are therefore not dischargeable. The dollar amounts that kick-start the presumption of fraud have changed, as follows:
- If you charge more than $600 worth of luxury goods on one credit card within 90 days of filing for bankruptcy, the law presumes that your intent in making the charges was fraudulent.
- If you get cash advances from any one creditor totaling more than $875 within 70 days of filing for bankruptcy, the law presumes that your intent was fraudulent.
Effective date: November 29, 2011