Bankruptcy Myth: Maxing out credit cards before filing bankruptcy by Kelly M. (Robinson) Resnick, Bay Area Office
There is this notion among some people facing bankruptcy that they can max out their credit cards right before filing their case. Seems like a good idea, since you’re going to file anyway…why not get the most bang for your buck, right?
Absolutely, positively WRONG!!
This is one of the worst ideas someone can have and act upon prior to filing bankruptcy. As soon as you begin considering bankruptcy, you should stop using your credit cards. Charging more on your credit cards when you already know you cannot afford to pay it back could be considered FRAUD by a bankruptcy judge.
But the trouble with this idea doesn’t end there…deliberately charging your credit card because you did not intend to pay it back can put your entire case in jeopardy. The Court can decide not to include this particular debt in your discharge, can deny to discharge any and all of your debt, can prevent you from filing bankruptcy again for another year, and worst case, you can be charged with a federal crime.
Don’t let this happen to you…it’s just not worth it. The relief that Bankruptcy provides is worth more than whatever you wanted to charge on the credit card. Once you make the conscious decision to file bankruptcy, stop using the credit cards. Think of this as your first step in freeing yourself from the chains of debt.
If you’re not sure if you should file bankruptcy, or if you know you should and need help with the process, contact one of our experienced attorneys for a free consultation today! 916-728-1500 (Sacramento Area), 510-456-7400 (Bay Area), or check us out on the web…www.hlawinc.com