The Quick Answer

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.

The Long Answer

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.