I’ve had potential clients tell me they paid their income taxes with cash advance checks from their credit cards– or just a direct charge. I realize that an unsophisticated creditor may not notice — but I doubt that BofA, Wells Fargo or most other credit card issuers would overlook such charges, and quite possibly, challenge or object to the discharge. The nature of credit card debt need not be disclosed in the schedules. It is technically non-dischargeable but I am not aware of any duty to disclose that fact in the schedules. It certainly should be made clear to the client in writing though. The creditor doesn’t have to file a 523 adversary. So after the discharge is entered, they can sue, after having added interest at 25% and numerous late fees and over the limit fees.
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