Nondischargeable Debts

False Pretenses and False Representation

Section 523(a)(2)(A) excepts from discharge debts obtained by false pretenses, false representation, or actual fraud. The creditor must prove that the debtor made a knowingly false statement that the creditor relied upon in extending credit.

Credit Card Fraud Presumption

Section 523(a)(2)(C) creates a presumption of fraud for certain credit card charges: luxury goods or services exceeding $725 within 90 days of filing, and cash advances exceeding $1,000 within 70 days of filing. These thresholds are adjusted periodically.

The 60-Day Deadline

Creditors who want to challenge dischargeability under 523(a)(2) must file an adversary proceeding within 60 days of the first date set for the 341 meeting of creditors. If they miss this deadline, the debt is discharged regardless of fraud.

This deadline is strictly enforced. Many fraud claims are lost simply because the creditor did not file in time.