Credit card debt discharge in a Chapter 13 bankruptcy usually survives, even when fraud is suspected. Fraudulent charge accounts and bankruptcy filings have forced creditors and issuers to push for stricter bankruptcy reforms to prohibit debtors from abusing a system originally intended to help individuals who have a legitimate need for consumer debt protection. Creditors with unsecured claims, like delinquent charge balances, have a greater chance of settlement in a Chapter 13 proceeding. Bankruptcy filers repayment plans are structured to satisfy creditors from regularly earned income. Wage earners promise to repay all non-exempt claims in monthly installments over a period of three to five years, monitored and enforced by court-appointed trustees.
