Indiana Bankruptcy Blog

Can I File Bankruptcy On Store Credit Card After Christmas?

Christmas is a time of giving, but it can also be a time of over-spending.   Buying gifts for Christmas can build up high balances on store credit cards.  Can you file for bankruptcy on store credit cards after Christmas?  The answer is generally “yes” with a few exceptions.

Filing on Store Credit Cards

You can generally file on store credit cards any time during the year including after Christmas.  You have the “right” to file bankruptcy at any time.  The setting up of bankruptcy courts is even mentioned in the Constitution.  If you have debts that cannot be repaid, you will likely always have the right to file for bankruptcy.

All forms of normal debt are dischargeable (go away) in bankruptcy.  Store credit cards are considered a “normal” debt that is frequently discharged in bankruptcy.  Your debt to each store will be eliminated when you file your case.

Charging on a Store Card Without the Intent to Repay your Debt

Store credit cards can usually be filed on after Christmas.  However, when you incur a debt, you have to intend to repay it.   If you charged up several store credit cards with the intention on filing on them shortly after, you may be denied your discharge on some of these debts.

The court usually looks at the timeframe when you charged up debts on the store cards.   If you charged up most of your debts within the 3 months before your bankruptcy filing, you may be in trouble.   Store credit card debts that are incurred within three months of a bankruptcy filing are assumed to be “fraud” on some level.  The court will automatically assume that you never intended to repay the debt just because those new debts were so recent.   In such situations, your store credit card provider can hire an attorney to sue you in the bankruptcy case.  If their lawsuit is successful, then you will still be required to repay the debt.

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