In most cases, you can get rid of credit card debt in Chapter 7 bankruptcy. Learn what happens to your credit card debt in Chapter 13 bankruptcy. If you take out a cash advance prior to bankruptcy, you might not be able to discharge the debt. Learn more.
A novation is a trilateral agreement by which an existing contract is extinguished and a new contract brought into being in its place. Indeed, for an agreement to effect a valid novation the appropriate consideration is the discharge of the original debt in return for a promise to perform some obligation.
3.2 Novation. Novation is a method of releasing a party from the contract and introducing a new one in his or her place. Novation differs from assignment in that novation requires the consent of all the parties to the existing contract. The new contract may be between the parties to the existing contract only or new parties may be substituted.