Are merchants paid from Credit Card Companies included in BK?

[uofaguy]

Hi All,

If one includes a credit card with recent charges (e.g. incurred less than 30 days ago) in a Ch. 7 filing, would the merchants with whom you paid via credit card still be paid by the credit card company? That is, Visa (for example) is not going to go back to my local dentist and refuse to pay the charge he submitted for my services, will they?

Any insight is appreciated!

Thanks.

[lrprn]

No, your lender will be paid. If Visa has a problem with the charge, they will object and do their best to make YOU pay them back for what they paid your dentist.

[HHM]

lrprn, I just want to clarify because your response seems a bit confusing.

The merchant, (i.e. your dentist) gets paid notwithstanding your BK. The credit card companies do not go back to the merchants and treat a discharged debt as a charge-back.

[Bandit]

Hi All,

If one includes a credit card with recent charges (e.g. incurred less than 30 days ago) in a Ch. 7 filing, would the merchants with whom you paid via credit card still be paid by the credit card company? That is, Visa (for example) is not going to go back to my local dentist and refuse to pay the charge he submitted for my services, will they?

Any insight is appreciated!

Thanks.

One attorney I talked to here told me that if we are in a situation where we have no choice but to get medical attention through using credit, not to lose sleep over it & it will be discharged because all health related bills are forgiven in BK. If the credit card companies want to make me pay for all the medical bills on my visas, then it would be pointless for me to ever file a BK. I do not know yet, but it is very possible I may be making medical charges clear up to the day I file. I stopped thinking about it as it causes me too much pain inside not knowing for sure when this is going stop.

I would think that the law knows we all need our teeth or some kind of denture in order to chew food to survive. Then again, if someone has never had their teeth knocked down their throat they may not fully understand what chewing really means.

You could ask that question to several different attorneys & every response will be a little different...so, I am pretty sure I will be going with the one who has over 30 years experience in bankruptcy & who is capable of doing all types of BK not just the ones who only do chpater 7...I just hope he is not retired by the time I get there

[uofaguy]

Thank you all for the clarification. Nice to know that my local merchant / medical provider won't suffer and have to indirectly pay for my BK (via charge backs).