If you’re considering bankruptcy, you may be wondering, “Is my credit card debt wiped out in bankruptcy?” The answer is generally yes, but will depend on whether your actions could be considered fraud. If there is a question of credit card fraud (abuse), the credit card company will try to convince the bankruptcy judge that you knowingly abused them. Typically, one of three types of credit card fraud can be claimed.

1. You increased your credit card debt in the weeks and months prior to filing the bankruptcy petition, knowing that you would soon be filing for bankruptcy. Based on these actions, the credit card company can claim that you had no intention of repaying your debt.

2. You lacked a realistic basis for believing that you could repay such charges. This can be based on your existing debt, combined with not enough income at the time charges were made.

3. You knowingly submitted false financial information to obtain credit, or to increase your credit line.

The discharge of credit card debt is depending on your transactions being free of fraud. The Bankruptcy Code excludes from discharge all debts acquired by fraud, false pretenses, and misrepresentation. If you want to wipe out your credit card debt by filing bankruptcy, you will need to be sure that the credit card company cannot prove fraud. This is something a competent bankruptcy attorney can help you navigate.

Your creditors have a 60 day period (following the first meeting with creditors) to file a lawsuit to challenge the discharge of your credit card debt. If the credit card company successfully convinces the bankruptcy judge that fraud is present, then your Chapter 7 discharge will not include your credit card debt. Previously, only people filing for Chapter 7 bankruptcy had to be concerned about credit card issuers claiming fraud. However since the new bankruptcy laws were passed in 2005, credit card issuers can contest the discharge of credit card debt in a Chapter 13 bankruptcy, in addition to Chapter 7.