FAQ: Should I Max Out My Credit Cards Before Filing Bankruptcy?

Should I max out my credit cards before I file for bankruptcy?
What happens if I max out my credit cards before I file for bankruptcy?

NC Bankruptcy Lawyer in Charlotte North Carolina for Chapter 7 / Chapter 13

People will sometimes tell me that a friend told them that they maxed out their credit cards before filing for bankruptcy.   Or they will simply ask me if they should max out their cards since they are going to file for bankruptcy. 
Now, people don't really have to ask me this question because they already know the answer. 
No.  It is wrong.  It is taking money with the intent not to repay it. If you asked your grandmother if she thought you should do it she would probably spank you for asking the question. 
As for the legal answer, you can get into a lot of trouble if you intentionally max out your cards before filing for bankruptcy.  It may be deemed to be fraudulent.  The creditors can have the debts you ran up excluded from your discharge.  Your entire discharge can be put in jeapordy since the court can refuse to give a bankruptcy discharge to someone who doesn't deserve help and has committed fraud.  If your actions are bad enough, it may also be criminal. 
If you have done anything that you think fits into this discussion, you need to be sure to discuss it with your attorney to see if she can do anything to lessen the impact of your actions or protect you in some way. 
And certainly stop using those cards or borrowing more money.  You can't borrow your way out of debt, and it isn't right to keep borrowing at someone else's expense when you know you can't pay them back. 

Click if you are interested in speaking with me:

See articles of Wendell Sherk, MO bankruptcy attorney by clicking the following links:

I Heard That ... I Could Max-Out My Credit Cards Before I File Bankruptcy

Credit Cards and Bankruptcy: Beware Recent Use

1701 Scott Avenue Charlotte North Carolina 28203
phone: 704 / 377-0776
fax: 704 / 377-0775
DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. Personal opinions may also be expressed. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.

The Law Office of Susanne M. Robicsek is
a Federally Designated Debt Relief Agency
under the Bankruptcy Code.
I file bankruptcy cases for people in financial need,
and have been doing so since 1989.

IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
Copyright Susanne Robicsek 2011

Charlotte NC Bankruptcy Lawyer Concentrating In Consumer Bankruptcy Since 1988
Copyright 2000 - 2017

Page copy protected against web site content infringement by Copyscape