Stop paying Chase, but pay all others

[catleg]

I can only speak of my personal experience (which is pretty extensive). I have had no AP's filed against me, by the way.

If a creditor were to challenge dischargability of a cash advance it would go before a judge to decide whether you took the loan with fraudulent intent, i.e. no intent to pay it back.

Most AP's are filed because they are so cut and dried the creditor knows they cannot lose. For example, it is common in casino markers for a person to take the advance without having money in the bank to cover the marker even though there is language on every casino marker that says "I represent that I have money on deposit in said institution to cover this check." So when you file for BK they pull your bank records for that time period and check. If you don't have the money they file an AP, your attorney tells you "you cannot win this", and then you agree that the debt is non-dischargeable in BK.

So for a credit card, they would have to see a clear inability to pay. For example, you are in default on other credit cards, you have been sued for bad debt, you have consulted a BK attorney, you opened an account and immediately charged it to the max and never made a payment.

In high dollar business situations they might try to push it a little harder, where the grounds are not quite so clear, but for the typical credit card balance (+/- 10k) I think one or two payments and not being in default on other cards would be sufficient. As always your mileage may vary, this post for entertainment purposes only, not legal advice. :-)

[flyinbroke]

Universal default is dead but this is an old thread with a new update. I also played pick-n-choose which got paid and which did not.

In my case, Chase is only being paid because they are so fast to sue and I only owe 800 bucks.

[DYLAN150]

Yea, sorry, I just noticed the dates:

[WhatMoney]

Universal default is dead but this is an old thread with a new update.

The new CC law says "Credit card issuers will not be able to increase interest rates on existing credit card balances unless the borrower is at least 60 days late on the account. This will eliminate the retroactive rate increases and the universal default clause where credit card issuers would periodically review an account holder’s current credit standing to determine changes in terms and annual percentage rates."

However nothing is said about raising rates on future charges, so I don't think universal default is completely dead, since it can still be applied to future balances.

[junker]

my oh defaulted on a few cards in Dec 09, and kept one current, crap 1. so far there have been no changes in limit or interest rate yet, of course she keeps a high outstanding balance on it.....if they cut her limit or raise the interest, it will join the others in fireplace......

[flyinbroke]

The new CC law says "Credit card issuers will not be able to increase interest rates on existingfuture charges, so I don't think universal default is completely dead, since it can still be applied to future balances.

Agree, but most people who have defaulted are not making future charges since they close the cards when you stop paying.