I met with a client this week who told me she was going to wait until first of the year to file for bankruptcy. She wanted to make sure she still had her credit cards so she can buy her children Christmas gifts. This article addresses the question of "can I max out my credit cards before I file?"
The holidays are fast approaching and concerns about how to buy gifts for family members and friends can often be overwhelming, especially if you are in a difficult financial situation. I often meet individuals who know they need to file for bankruptcy but don't want to do so before the holidays. The main reason? They want to make sure what is left of their credit cards lines is available for holiday shopping.
Dayton Bankruptcy Attorney, South Dakota Bankruptcy Lawyer, Pennsylvania Bankruptcy Lawyer,
This is a huge mistake.
According to bankruptcy code, credit card purchases made within the 90 days prior to your petition being filed may not be discharged. Those purchases are fair game for serious review.
Making purchases with your lines of credit, fully intending to file for bankruptcy later on, is considered fraud. If you go Christmas and holiday shopping knowing that you do not have the means to repay those debts, or with the intent to file for bankruptcy, that may be considered fraud. If the creditor brings a non-dischargeability action in your bankruptcy court, it will mean you'll have to pay your attorney to defend you or negotiate with the creditor.
Realistically speaking, there is no reason to wait to file for bankruptcy. Contact your San Francisco bankruptcy attorney right away and get the ball rolling. Remember, holiday season should be about spending time with those you love - not about the gifts. This year, consider need vs. want and plan to start 2011 on your path of living debt free.
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