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Ok, So, your chapter 7 is filed. Has any creditor filed an objection?
The ball is in the creditors court, at this point.
If they file an objection for the recent usage, called an adversary, you would have to fight the claims that they make in that case.
The code section that would likely be used: 523
(2) for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by— (A) false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition; (B) use of a statement in writing— (i) that is materially false; (ii) respecting the debtor’s or an insider’s financial condition; (iii) on which the creditor to whom the debtor is liable for such money, property, services, or credit reasonably relied; and (iv) that the debtor caused to be made or published with intent to deceive; or (C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $1,000 for “luxury goods or services” incurred by an individual debtor on or within 60 days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 60 days before the order for relief under this title, are presumed to be nondischargeable; “luxury goods or services” do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act;
It's letter C that you would have to defend against.
If the creditors do not object, then they will likely discharge the debts.
When you meet with the trustee at the 341 meeting, and if they ask you about recent usage, be honest.
Explain what it was for.
I wouldn't sweat it until you receive an adversary.
It is a no-no but without an objection, nothing to worry about yet
do you have any questions?
can I be charged with fraud? I work at a prison, and see the law every day.
The code section alleges fraud, yes, recent usage just before filing. At worst, you would just have to pay that usage back
You can negotiate that with the creditor if and when they object.
ok, you have made me feel much better! Thanks and have a great day
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