Round Lake Bankruptcy Attorney Advises To Cease Credit Card Usage Pr...

Bankruptcy is for an honest debtor only claims Round Lake bankruptcy attorney.  Bankruptcy is something that people have to file to get out of debt once they find themselves strapped in debt with the inability to repay.  Bankruptcy is not something that should be gained or tried to win the system of getting as much bang for your buck if you are going to file a bankruptcy, run your credit cards up. 

The Bankruptcy Code specifically prohibits or discourages rather people from using their credit cards or getting cash advances or other types of debt too close to filing a bankruptcy.  The bankruptcy code provides for someone to file an adversarial complaint objecting to that particular debt that was incurred basically by fraud too close to filing a bankruptcy.  What I come across in my practice is I will get a situation where I meet somebody for the first time and I advise them that if they are thinking of filing, they should not incur any new debt.  They should not use the credit cards again.  They should stop making minimum payments but do not use the cards. 

Often times someone will take that information that I provide, leave my office and do the exact opposite.  What these people think they are going to do is run up a ton of debt, max out all of their credit cards, take cash advances, take payday loans, take other forms of credit and then quickly turn around and come back into my office and file a bankruptcy.  What they don’t realize is that anything incurred too close to filing can be held non-dischargeable.  This kind of takes away from the idea of a fresh start in Chapter 7 bankruptcy.  If a client of mine is not able to get a fresh start but instead is hit with two or three adversarial complaints inside the bankruptcy case, then they are going to have a problem because there’s going to be debt that will remain due and owing after the cases filed.  So you might think that you are getting away with something at the time that you are overcharging on the credit cards when you know you are going to be filing a bankruptcy but believe me, you were going to run into a greater problem when the creditor files an adversary and you are responsible for the fees and costs. 

So if you are thinking of filing a bankruptcy, do not use your credit cards again.  Do not make any minimum purchases.  Do not take any cash advances.  If you are thinking of filing a bankruptcy, do not go out and get a financed jewelry or finance furniture or financed electronics with the thought that you are going to be able to keep those items without making a payment.  The truth is, those items are secured items and if you wish to keep those items, you are going to have to continue to make payments by reaffirming the debt on those items. 

With regard to a vehicle, you can purchase a vehicle prior to filing a bankruptcy because you are either going to keep the vehicle by reaffirming the debt or you are going to have to surrender the vehicle back to the finance company.  So there is no fraud.  However, with unsecured debt such as credit cards and personal loans and cash advances and things of that nature, then you want to be careful that you are not using those cards or taking those advances with the knowledge that you are going to be filing a bankruptcy a short time thereafter. 

Once again, creditors can file an adversarial complaint and you could be held responsible for that debt due and owing after your bankruptcy case is filed.  What you are doing is hurting yourself in that you are not getting a complete fresh start.  You are not getting away with anything and you are going to be responsible for that debt that was incurred too close to the bankruptcy filing going forward.