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Know What You Are Getting Into

Posted by Kevin on January 2, 2012 under Bankruptcy Blog | Be the First to Comment

Credit card debt is almost always discharged in bankruptcy.  That means that you do not have to pay the debt.  If a creditor tries to collect a credit card debt while the bankruptcy is pending, that is called a violation of the automatic stay.  If it happens after the bankruptcy discharge and close of the case, it is a violation of the bankruptcy injunction against collecting discharged debts.

But there is another way to get a debt “discharged”.  That occurs when a credit card company does not sue you before the statute of limitations runs.  This is sometimes referred to as “expired debt”.   In NJ the statute of limitations  is usually 6 years.  In the past, if a credit card company did not sue before the statute of limitations ran, they were SOL.

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