1. Which debts are dischargeable in a bankruptcy?Not all debts can be discharged in a chapter 7 case. Some debts simply can’t be wiped  out in a bankruptcy. These debts will remain valid and collectible, just as they were before you filed for bankruptcy. To fully understand exactly what bankruptcy can do for you,  it is imperative that you fully understand which of your debts you will still owe after your bankruptcy case is over. This info point can’t be over emphasized! To some debtors, it may not be worth it to file if a certain debt won’t be wiped out.When the bankruptcy court grants you a final discharge, the bankruptcy court won’t specify which of your debts have been discharged. Instead, you will simply receive a non-specific form from the court that explains you have received a discharge. This form is called a discharge order. This set of FAQ’S helps you determine which of your debts are discharged, and which debts may survive.Here’s a quick summary of what specific debts are dischargeable;• Certain kinds of debts are always discharged in bankruptcy, except in rare circumstances.• Some types of debts are never discharged in bankruptcy.• Student loan and income tax debts are not discharged unless you can prove that your situation is an exception to the rule.• Some types of debts are discharged unless the creditor comes to court and successfully objects to the discharge.2. What should I do if my creditor informs me that their debt is non-dischargeable?Some of your creditors may claim that the debts you owe them can’t be wiped out in bankruptcy. For example, some leases for computers or other consumer goods often contain clauses stating that if you are unable to complete the lease period, then you can’t wipe out the balance of the debt in a bankruptcy.Don’t fall for this dirty trick! The only debts you can’t discharge in bankruptcy are the ones that are specifically listed in the Bankruptcy Code as non-dischargeable. An experienced bankruptcy lawyer can fully advise you as to which of your debts are dischargeable, and which debts can’t be wiped out.3. What are the most common debts that are dischargeable in a bankruptcy?

There a certain types of debts will almost always be discharged. This means that you will no longer be responsible to repay them once you receive discharge.a. Credit Card Debts

Without any doubt, the hordes of people who file for bankruptcy try to wipe out credit card debt. For the most part credit card debt is almost always dischargeable. Only in rare cases is a credit card debt declared non-dischargeable. In rare cases credit card debt won’t be discharged if there is there is fraud involved, or if the debtor made luxury purchases immediately prior to the bankruptcy filing.b. Medical Bills

Many of clients file for bankruptcy because they get swamped with massive medical bills. Today, over 40 million Americans have no medical insurance or other access to affordable medical care and must rely on emergency rooms for their primary care. Moreover,  millions of working Americans either have inadequate insurance from their employer, or can’t afford the plans that are available to them. Fortunately, bankruptcy provides an escape from your medical bills. Any medical bills, x-ray bills, ambulance bills, will be discharged at the end of your bankruptcy case. Billions of dollars in medical bills are discharged in bankruptcy every year.c. Lawsuit Judgments

Most civil court cases are simply all about money. If someone wins one of these lawsuits against you, then the court issues a judgment ordering you to pay. If you don’t come up with the money voluntarily, then the judgment holder is entitled to collect it by, for example, seizing your bank account, garnishing your wages, or filing a judgment lien on your home.Civil judgments are almost always dischargeable in bankruptcy, regardless of the facts that led to the lawsuit in the first place. In a bankruptcy the vast majority of civil  judgments are dischargeable Even judgment liens on your home that arise from a court money judgment can be canceled/voided if they interfere with your homestead exemption.d. Debts Arising From Car Accidents

A car accident(s) usually result in property damage and sometimes in personal injuries. Often, the driver who was responsible for the accident is insured and doesn’t have to pay personally for the damage or injury. However, sometimes the driver who was at fault either has no insurance or has insurance that isn’t sufficient to pay for everything. In that situation, the driver is financially responsible for the harm.If the accident was the result of the debtor’s negligence/careless driving or failing to drive in a prudent manner-the debt arising from the accident can be discharged in bankruptcy. If, however, the accident was the result of the driver’s willful and malicious act or drunk
driving, it will survive bankruptcy.e. Obligations Under Leases and/or Contracts

Increasingly in our world personal property such as cars are leased rather than owned. And most leases have severe penalty clauses that kick in if, for some reason, you are unable to make the monthly payment or do whatever else the lease requires you to do.Some debtors also have obligations under a contract, such as a contract to sell real estate, buy a business, deliver merchandise, or perform in a play. The other party may want to force you to hold up your end of the deal, even if you don’t want (or are unable) to, and sue you for breach of contract damages.Obligations and liabilities under these types of agreements can also be discharged in bankruptcy. Almost always, filing for bankruptcy will convert your lease or contractual obligation into a dischargeable debt-unless the trustee believes the lease or contract will produce money to pay your unsecured creditors or the court finds that you’ve filed for bankruptcy precisely for the purpose of getting out of a personal services contract.f. Personal loans and Promissory Notes

Money that you borrow in exchange for a promissory note is almost always dischargeable in bankruptcy. As with any debt, however, the court may refuse to discharge a loan debt if the creditor can prove that you acted fraudulently. But that almost never happens.

4. What type of debts are not dischargeable in a chapter 7?

Under bankruptcy law, there are several categories of debt that are “not dischargeable.” This means that you will still owe this debt after your bankruptcy case is finished;• Some debts can’t be discharged under any circumstances.• Some will not be discharged unless you convince the court that the debts fit within a narrow exception to the rule.• Some will not be discharged, but only if the creditor convinces the court that they shouldn’t be.5. Are secured debts dischargeable?

Some types of secured debts are contractually linked to specific types of property and this called collateral. If you don’t pay the debt, then the creditor can take back the collateral. The most common type of secured debts include loans for cars and homes. If you have a debt that secured by collateral, then bankruptcy eliminates your personal liability for the underlying debt. Thereafter,  your secured creditor can’t sue you to collect the debt itself. Unfortunately, bankruptcy doesn’t eliminate the secured creditor’s lien on the property that served as collateral under the contract. Thus, you can’t keep your car or your home unless you agree to pay your secured creditor. Other types of secured debts that arise involuntarily, as a result of a lawsuit judgment or an enforcement action by the IRS on taxes are also not wiped out. In these cases, too, bankruptcy gets rid of the underlying debt, but may not eliminate a lien placed on your property by the IRS or a judgment creditor.6. What type of debts are not dischargeable under any circumstances?

There are certain debts that bankruptcy doesn’t affect you at all: You will continue to owe them just as if you had ever filed.a. Domestic Support Obligations

Any debts that are defined as “domestic support obligations” are not dischargeable. Domestic support obligations include child support, alimony and court ordered day care expenses.To be considered a non-dischargeable debt a domestic support obligation must have been established-or must be capable of becoming established-in:• a separation agreement, divorce decree, or property settlement agreement• an order of a court that the law authorizes to impose support obligations, or• a determination by a child support enforcement agency (or other government unit) that is legally authorized to impose support obligations.7. Are the other types of martial debt(s) that I may owe to my spouse dischargeable?Under the old bankruptcy law, any debts owed to a spouse or child, other than support that arose from a divorce, were discharged unless the spouse or child appeared in court to contest the debt. Under the new bankruptcy law, this category of debt is now automatically non-dischargeable. The most common of these types of debts is when one spouse agrees to assume responsibility for marital debt or promises to pay the other spouse in exchange for his or her share of the family home. These types of obligations will now be non-dischargeable if they are owed to a spouse, former spouse, or child, and arose out of “a divorce or separation or in connection with a separation agreement, divorce decree, or other order of a court of record, or a determination made in accordance with State or territorial law by a governmental unit.”

This rule doesn’t apply to debts arising from a separation agreement between domestic partners. This is one example of many as to why civil unions do not provide the same benefits as marriage.

8. Are court fines, penalties or restitution dischargeable?

You can’t discharge fines, penalties, or restitution that a federal, state, or local government has imposed to punish you for violating a law. Some examples include:

• fines or penalties imposed under federal election law

• charge imposed for time spent in a court jail

• fines for infractions, misdemeanor or felonies

• fines imposed by a judge for contempt of court

• fines imposed by a government agency for violating agency regulations

• surcharges imposed by a court or agency for enforcement of a law

• restitution you are ordered to pay to victims in federal criminal cases, and

• debts owed to a bail bond company as a result of bond forfeiture.

9. I was convicted of tax fraud. I now owe owe the IRS $50,000. If I file for bankruptcy can I wipe out these back income taxes?

No, you cannot discharge debts for income taxes if you didn’t file a return or you were  intentionally avoiding your tax obligations. Any tax returns filed on your behalf by the IRS are not considered returns and therefore don’t make you eligible for a discharge of
income tax debt.

10. I owe $25,000 in back property taxes. If I file for bankruptcy can I wipe out my back property taxes and still keep my home?

No, property taxes aren’t dischargeable unless they became due more than a year before you file for bankruptcy. Even if your personal liability to pay the property tax is discharged, however, the tax lien on your property will remain. From a practical standpoint, this discharge won’t help you much, because you will still have to payoff the lien before you can transfer the property with clear title. Moreover, you may even face a tax-foreclosure action by your township if you take too long to pay your back property taxes. A local township will file a tax foreclosure case if you have two years worth of back unpaid property taxes.

11. What other type of taxes are not dischargeable?

The other types of taxes that are not dischargeable are mostly business related: payroll taxes, excise taxes, and customs duties, sales, use, and poll taxes are also probably not dischargeable.

12. I was recently convicted for a DWI charge. Moreover, I was also involved in an accident with another vehicle and I was sued for $50,000. Can I file for bankruptcy and wipe out these debts as well?

If you kill or injure someone while you are driving and are illegally intoxicated by alcohol  drugs, any debts resulting from the incident aren’t dischargeable. Even if  judge or jury finds you liable but doesn’t specifically find that you were intoxicated, the debt may still be non-dischargeable. The judgment against you won’t be discharged if the bankruptcy court determines that you were, n fact, intoxicated. Note that this rule applies only to personal injuries: Debts for property damage resulting from your intoxicated driving are dischargeable.

13. I now owe $10,000 in back condo dues. Can I file for bankruptcy and wipe out these back condo dues?

Maybe, you can’t discharge condo fees that were assessed after your bankruptcy filing date. As a practical matter, this means that any condo dues that become due after you file for chapter 7 will survive the bankruptcy. However, any condo dues that you owed prior to filing will be discharged.

14. Can I file for  a bankruptcy and discharge my loans from a retirement plan?

No, if you’ve borrowed from your 401(k) or other retirement plan that is qualified under IRS rules for tax deferred status, then you will be stuck with that debt.

15. Are student loans dischargeable?

In most cases student loans can’t be discharged. Student loans made are not dischargeable unless the debtor could show undue hardship. The bankruptcy courts use a totality of the circumstances test to analyze any hardship case. See, Brunner v. New York State Higher Education Services, Inc., 46 B.R. 752 (S.D. N.Y. 1985), and, 831 F.2d 395 (2nd Cir 1987). The totality of the circumstances test essentially means the court will consider all of the facts it deems relevant in deciding whether undue hardship exists.

The vast majority of courts use the Brunner three-factor test. You must show that all three factors tilt in your favor in order to demonstrate undue hardship. The factors are:

a. Poverty. Based on your current income and expenses, you cannot maintain a minimal standard of living and repay the loan. The court must consider your current and future employment and income (or your employment and income potential), education, and skills; how marketable your skills are; and your health and family support obligations.

b. Persistence. It’s not enough that you can’t repay your loan right now. You must also prove that your current financial condition is likely to continue for a significant part of the repayment period. In one recent case, for example, a debtor with bipolar disorder lost her job as a result of stopping her medication. Because her history demonstrated that she could remain employed as long as she took her medication, however, the court found that her economic condition would not necessarily persist-and it rejected her undue hardship claim. (In re Kelly, 351 B.R. 45 (E.D. N.Y. 2006).)

c. Good faith. You must prove that you’ve made a good-faith effort to repay the debt. Someone who files for bankruptcy immediately after getting out of school or after the period for paying back the loan begins will not fare well in court. Nor will someone who hasn’t tried hard to find work. And, if you haven’t made any payments, you should be able to show that you took your obligations seriously enough to obtain a deferment or forbearance. (See, In re Kitterman, 349 B.R. 775 (W.D. Ky. 2006), in which the court found that the debtor’s failure to reapply for a deferment after his first request was denied showed his lack of good faith.)

Generally, most bankruptcy courts look for reasons to deny student loan discharges. However, if you are older person, (at least 50 years old), you are likely to remain poor, and you will have a history of doing your best to payoff your loan, then you maybe able to obtain a discharge.

In some cases, bankruptcy courts have found that it would be an undue hardship to repay the entire loan and have relieved the debtor of a portion of the debt. Other courts take a more strict position: Either the entire loan is discharged or none of it is discharged.

It is advisable to consult with an experienced bankruptcy lawyer about discharging your student loan. There are dozens of court cases that interpret the three factors from the Brunner case or explain what the “totality of the circumstances” include. Most debtors lose most of applications to discharge student loans. However, if your circumstances are unique, then you may have a chance. If you are filing for bankruptcy and you have substantial student loan debt, you should talk to an attorney who is knowledgeable on these issues.

16. What are the special bankruptcy rules for HEAL and PLUS Loans?

The federal Health Education Assistance Loans (HEAL) Act, not bankruptcy law, governs HEAL loans. Under the HEAL Act, to discharge a loan, you must show that the loan became due more than seven years ago, and that repaying it would not merely be a hardship, but would impose an “unconscionable burden” on your life.

Parents can get Parental Loans for Students (PLUS Loans) to finance a child’s education. Even though the parent does not receive the education, the loan is treated like any other student loan if the parent files for bankruptcy. The parents must meet the undue hardship test to discharge the loan.

17. Are regular income taxes dischargeable?

Many debtors who are considering bankruptcy because of tax problems are almost always concerned about income taxes they owe to the IRS or the state equivalent. There is a myth that income tax debts can never be discharged in bankruptcy. This is not true! I have discharged hundreds of thousands of dollars of tax debt in my career. If the tax debt is at least three years old, and if you can satisfy several other conditions, then tax debt may be dischargeable. If you have tax debts that qualify under these rules, then these debts can be wiped out just like credit card debt.

Income tax debts are dischargeable if you satisfy all of these conditions:

a. You filed a legitimate (non-fraudulent) tax return for the tax year or years in question. If the IRS completes a Substitute for Return on your behalf that you neither sign nor consent to, your return is not considered filed. (See, In re Bergstrom, 949
F.2d 341 (10th Cir. 1991).)

b.  The liability you wish to discharge is for a tax return (not a Substitute for Return) that you actually filed at least two years before you filed for bankruptcy.

c. The tax return for the liability you wish to discharge was due at least three years before you filed for bankruptcy.

d. The IRS has not assessed your liability for the taxes within the 240 days before you filed for bankruptcy. You are probably safe if you do not receive a formal notice of assessment of federal taxes from the IRS within that 240-day period.

If you meet each of these four requirements, then your personal liability for the taxes should be discharged. However, any lien placed on your property by the taxing authority will remain after your bankruptcy. The result is that the taxing authority can’t go after your bank account or wages. but you’ll have to payoff the lien before you can sell your real estate with a clear title.Penalties on taxes can also be dischargeable.

18. What other type of debts are not dischargeable in bankruptcy if the creditor successfully objects?

Four types of debts may survive a chapter 7 case if, and only if,

• the creditor files a formal objection-called a Complaint to Determine Dischargeability—during the bankruptcy proceedings, and

• the creditor proves that the debt fits into one of the categories discussed below.

Creditors might not bother to object. Even though bankruptcy rules provide the creditors the right to object to the discharge of certain debts, many creditors-and their attorneys don’t fully understand this right. Moreover, many creditors might sensibly decide to write off the debt rather than contesting it. It can be expensive to file a “dischargeability action” The filing fee to file an adversary case is $250. Moreover, your creditor will also have to pay lawyer fees. If the debt is not significant, then many creditors will not believe that it is worth the effort to contest the dischargeability of their debt.

a. Debts Arising From Fraud. In order for a creditor to prove that one of your debts should survive bankruptcy because you incurred it through fraud, the debt must fit one of the categories below.

b. Debts from intentionally fraudulent behavior. If a creditor can propve that a debt arose because of your dishonest act, and that the debt wouldn’t have arisen had you been honest, then the court probably will not permit you discharge the debt. Here are some common examples:

• You wrote a check for something and stopped payment on it, even though you will kept the item.

• You wrote a check against insufficient funds but assured the merchant that the check was good.

• You rented or borrowed an expensive item and claimed it was yours, in order to use it as collateral to get a loan.

• You got a loan by informing the lender you’d pay it back, when you had no intention of doing so.

For this type of debt to be non-dischargeable, your deceit and lies must be intentional, and the creditor must have relied on your deceit and lies in extending credit. It is important to emphasize that these are facts that the creditor has to prove before the debt will be ruled non-dischargeable by the court.

c. Debts from a false written statement about your financial condition. If a creditor proves that you incurred a debt by making a false written statement, then the debt isn’t dischargeable.

Here are the rules:

• The false statement must be written-for instance, made in a credit application, rental application, or resume.

• The false statement must have been “material” that is, it was a potentially significant factor in the creditor’s decision to extend you credit. The two most common materially false statements are omitting debts and overstating income.

• The false statement must relate to your financial condition or the financial condition of an “insider”- a person close to you or a business entity with which you’re associated.

• The creditor must have relied on the false statement, and the reliance must have been reasonable.

• You must have intended to deceive the creditor. This is extremely hard for the creditor to prove based simply on your behavior. The creditor would have to show outrageous behavior on your part.

d. Recent debts for luxuries. If you run up more that $550 in debt to anyone creditor for luxury goods or services within the 90 days before you file for bankruptcy, the law presumes that your intent was fraudulent regarding those charges; all the charges will survive your bankruptcy unless you prove that your intent wasn’t fraudulent. The term “luxury goods and services” does not include things that are reasonably necessary for the support and maintenance of you and your dependents .

e. Recent cash advances. If you get cash advances from anyone creditor totaling more than $825 under an open-ended consumer credit plan within the 70 days before you file for bankruptcy, the debt is non-dischargeable. “Open-ended” means there’s no date
when the debt must be repaid, but rather, as with most credit cards, you may take forever to repay the debt as long as you pay a minimum amount each month.

f. Debts Arising From Debtor’s Willful and Malicious Acts. If the act that caused the debt was willful and malicious (that is, you intended to inflict a specific injury to person or property), then the debt isn’t dischargeable if the creditor successfully objects. However, for reasons probably related to ignorance of their rights, creditors don’t often object in this situation.

Generally, any crimes that involve intentional injury to people or damage to property are considered willful and malicious acts. Some examples are assaults, rape, intentionally setting fire to a house (arson), or vandalism. Your liability for personal injury or property damage the victim sustained in these types of cases will  almost always be ruled non-dischargeable. Other acts that would typically be considered to be willful and malicious include:

• kidnapping

• deliberately causing extreme anxiety, fear, or
shock

• libel or slander, and

• illegal acts by a landlord to evict a tenant, such as
removing a door or changing the locks.

g. Debts From Embezzlement, Larceny, or Breach of Fiduciary Duty

A debt incurred as a result of embezzlement, larceny, or breach of fiduciary duty is not dischargeable if the creditor successfully objects to its discharge. “Embezzlement” means taking property entrusted to you for another and using it for yourself. “Larceny” is another word for theft, “Breach of fiduciary duty” is the failure to live up to a duty of trust you owe someone, based on a relationship where you’re required to manage property or money for another, or where your relationship is a close and confidential one. Common fiduciary relationships include those between:

• business partners
• attorney and client
• estate executor and beneficiary
• in-home care giver and recipient of services
• guardian and ward, and
• husband and wife.

19. What happens to any debts or creditors that I don’t list on my bankruptcy?

The most important part of the bankruptcy process is to make sure that your paperwork is complete. Your bankruptcy lawyer is not a mind reader, he does not have a crystal ball and he does not know who your creditors are. If you don’t list your debts on your bankruptcy petition, then there is a good chance that this debt won’t be wiped out. The bankruptcy law requires you to list all of your creditors on your bankruptcy papers and provide their most current addresses. This information  gives the court some assurance that everyone who needs to know about your bankruptcy will receive notice. As long as you do your part, the debt will be discharged . Even if the official notice fails to reach the creditor for some reason beyond your control, the debt will still be wiped out

20. What will happen if an creditor pops up after bankruptcy?

If a creditor comes out of the woodwork after your bankruptcy case is closed, then you can always file a motion to reopen your case. If your application to reopen is granted, then you can file an application to amend the bankruptcy schedules, and add any omitted debts. Unfortunately, it can be expensive to reopen up a case. The filing fees alone to file a motion to reopen a case are $250. Moreover, your lawyer will also have to file a motion. A typical motion to reopen takes at least 5 to 15 hours of attorney time. Therefore, the costs to prepare and litigate a motion to reopen can be as expensive if not more than the costs of the original case. However, if the omitted debt is significant, then it pays to reopen up the case.

21. Can my creditors dispute the discharge of my debts?

If your debt is not one that’s automatically discharged then there may be a dispute over whether the debt should survive your bankruptcy. For example, if the debt is one that you have to prove should be discharged, you may have to file a complaint to determine dischargeability. Or, if the creditor must prove that the debt should not be discharged, you might have to defend yourself in court against the creditor’s claims.

22. How can I apply to have my student loan or a disputed tax debt wiped out?

If you want to have a student loan or tax debt wiped out, then you will have to prove to the court that you satisfy all of the requirements for discharge. To accomplish  this, you must file a formal complaint with the bankruptcy court. Generally, you can file your complaint any time after you file for bankruptcy. These type of cases are called adversary cases.

Suppose, for example, that you want to have a student loan discharged. As discussed above, you will have to prove that it would be an undue hardship to repay the loan. You will file at least two forms: a complaint, stating the facts that make repayment an undue hardship, and a proof of service, showing that you served the complaint on the affected creditor and the trustee.

23. How can my creditors object to my bankruptcy?

To object formally to the discharge of a debt, the creditor must file a document called a Complaint to Determine Dischargeability of a Debt. These type of cases are also called adversary cases. The creditor must give you and the trustee a copy of the complaint. To defend against the objection, you must file a written response within a specified time limit and be prepared to argue your case in court. It can be very difficult for a creditor to prove that a debt was fraudulent and it can’t be discharged. The vast majority of adversary cases are settled.

If the creditor’s debt is one of the types that will be discharged unless the creditor objects, the creditor has the burden of proving that the debt fits within the specified category. For instance, if the creditor claims that the debt arose from a “willful and malicious injury” you caused, the creditor will have to prove that your actions were willful and malicious. Moreover, if the creditor is arguing that a particular debt arose from your fraudulent acts, then the creditor will have to prove that all the required elements of fraud were present.

It is important to emphasize that  if you plead guilty to a criminal charge involving fraud, a document from the court showing your conviction may be all that’s necessary to convince the judge to rule the debt non-dischargeable.

The fact that the creditor has the burden of proof doesn’t mean that you should do nothing and blow off an adversary case. You should be prepared with proof of your own to show that the creditor’s allegations in the complaint are not true.

24. What are the most common ground for a creditor to object to the discharge of a debt on my bankruptcy?

The vast amount of adversary cases are filed by credit card companies.  There are few specific rules about what constitutes credit card fraud in bankruptcy. The bankruptcy courts are review following factors to determine fraud:

• Timing. A short time between incurring the charges and filing for bankruptcy may suggest a fraudulent intent.

• Manipulation of the system. Incurring more debt after consulting an attorney may lead a judge to conclude that you ran up your debts in anticipation of your bankruptcy filing.

• Amount. As mentioned earlier, recent charges over $550 for luxuries will be presumed to be fraudulent.

• Crafty use of the card. Multiple charges under $50 (to avoid preponderance of the charge by the credit card issuer) when you’ve reached your credit limit will start to look a lot like fraud.

• Deliberate misuse. Changes after the card issuer has ordered you to return the card or sent several “past due” notices don’t look good.

• Last-minute sprees. Changes in your pattern of use of the card (for instance, much travel after a sedentary life), charges for luxuries, and multiple charges on the same day could lead to problems.

• Bad-faith use. Charges made when you were clearly insolvent and wouldn’t be able to make the required minimum payment (for instance, you had lost your job and had no other income or savings) are a no-no. Banks claim that insolvency is evidenced by
any of the following,

• A notation in the customer’s file that the customer has met with an attorney’ (perhaps because the customer told the creditor he or she was considering bankruptcy and had talked to an attorney about it).

• A rapid increase in spending, followed by 90 days without activity.

• The date noted on any attorney’s fee statement, if the customer consults a lawyer for help with a bankruptcy.

It is important to emphasize that the mere fact that a credit card company challenges your discharge of a credit card debt doesn’t mean the creditor will win in court. In most of these cases, these cases are settled for 20% to 30% of the amount of the disputed credit card debt. It is very time consuming to litigate an adversary case. Moreover, if the credit card company wins the adversary case, they still have to file yet another lawsuit in the civil courts to collect their money. Therefore, in the vast majority of the adversary cases that I have handled, I have been able to settle with the credit card company for 10% to 30% of the disputed debt.