|
Question # 12:
What if I have used my credit cards just before bankruptcy?
|
If you intentionally run up your credit cards in the hopes
of wiping them out in bankruptcy, you have committed
fraud. However, if you made purchases for reasonable
living expenses it may not be fraud. |
Incurring a debt in
contemplation of filing bankruptcy is fraud. Or in other words,
if you run up your credit cards, or take out some loans,
specifically because you plan to wipe these debts out in
bankruptcy, you have committed fraud. Since no one is foolish
enough to admit that they actually committed fraud, the
bankruptcy laws have been designed to prevent people from
committing fraud and getting away with it.
If you have been forced to live on your credit cards because of
your weak financial situation, that does not mean that you
committed fraud. Indeed, if you reasonably purchased
necessities needed to support yourself, then that may not be
considered fraud. Also, if when you took a loan, made some
charges, or took a cash advance, you had no plans on filing
bankruptcy, then it is possible that it may not be considered
fraud.
You should definitely meet with a qualified bankruptcy
attorney to discuss whether or not there would be a fraud
possibility and what affect any alleged fraudulent activity
would have on your case.
 
|
