QUESTION
I want to file bankruptcy but what I want to know is should I max out all of my credit cards first?
Asked on Mar 02nd, 2013 on Bankruptcy - Oklahoma
More details to this question:
I want to file for bankruptcy but I don't have all of my credit cards max out should I do this before I file? I do have most of them max and I can’t afford to keep paying on them anymore.
18 ANSWERS
No, you should not use your credit card for 90 days or more before filing bankruptcy.
Answered on Apr 01st, 2013 at 3:02 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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What you are proposing is fraudulent. It is a basis to lose a discharge. It can also be considered a criminal act.
Answered on Mar 21st, 2013 at 9:03 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Absolutely not.
Answered on Mar 08th, 2013 at 12:11 AM
Are you okay with robbing someone with a pen instead of using a gun? Because maxing out your credit cards to file bankruptcy is a criminal activity and will get you into a world of trouble. It is better to not file bankruptcy then to do something dishonest and try to use the court system to avoid reality.
Answered on Mar 05th, 2013 at 11:27 PM
No, you should not max out your credit cards in anticipation of filing bankruptcy. The court could interpret that as bad faith and dismiss your case without discharge.
Answered on Mar 04th, 2013 at 3:44 PM
Richard hirsh
Answer definitely not. Once you determine to file, it would border on fraud to max out your cards. The bankruptcy code addresses that problem.
Answered on Mar 04th, 2013 at 3:43 PM
Deborah F. Bowinski
NO! That is fraud.
Answered on Mar 04th, 2013 at 3:43 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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First, speak to a bankruptcy attorney, most give free consultations. Second, DO NOT, intentionally max out your credit cards in anticipation of filing. If this is discovered, which is highly likely, you will lose your discharge, which is the whole point of filing.
Answered on Mar 04th, 2013 at 3:42 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Maxing out means that you intend to deliberately charge items knowing that you will be filing Bankruptcy. That would be fraudulent. Not a good idea.
Answered on Mar 04th, 2013 at 3:41 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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That could be construed as fraud if you borrow money in anticipation of filing bankruptcy.
Answered on Mar 04th, 2013 at 3:41 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Absolutely not. That type of fraud will get you into serious trouble. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Mar 04th, 2013 at 3:41 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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Absolutely not. When you use the card, you promise to pay. If you max out the cards without the intent to pay, you are potentially committing fraud and could be forced to pay the debts despite the bankruptcy.
Answered on Mar 04th, 2013 at 3:40 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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In my opinion, the course of action that you suggest would constitute fraud (as you have no intention of paying for the charges on your card) and it is possible that debt that you add could be determined to be non-dischargeable.
Answered on Mar 04th, 2013 at 3:40 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You had better see an attorney immediately. If you max out all of your credit cards before filing intentionally that is a bankruptcy fraud and a criminal act.
Answered on Mar 04th, 2013 at 3:40 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No you should not max out your cards. If you do this, and fail to make minimum payments for 90 days on the cards, you will be subjecting yourself to adversary proceedings, having debts deemed not dischargeable. There is a presumption that anything bought within the past 90 days is a luxury and should not be discharged.
Answered on Mar 04th, 2013 at 3:40 PM
Bankruptcy Attorney serving Charleston, SC
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Davis Law Firm
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Maxing out your credit cards may cause your creditors to try and block your discharge. If this happens, you will have to spend a lot of additional money to defend such an action. If you lose, running up the credit card could be found by the Court to be a bad faith action on your part to block the discharge of the credit card you run up or perhaps your entire discharge could be impacted. When you borrow money from someone, you are implying that you intend to pay the money back. Otherwise, you would not be borrowing the money. You need to talk with an attorney to get advice on what steps you may take before you file your case.
Answered on Mar 04th, 2013 at 3:39 PM
Adoption Attorney serving McAlester, OK
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Jeff P. Herrick
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No, you do NOT want to max out your credit cards. It can be alleged in your bankruptcy case that you committed fraud because you are/were insolvent and knew or should have known that you couldn't repay the debts while you were out maxing the credit limits on your cards. The creditor(s) can request that the Bankruptcy Court determine that the portion of the debts are not dischargeable.
Answered on Mar 04th, 2013 at 3:38 PM
Bankruptcy Attorney serving Overland Park, KS
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Wellman Law LLC
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No. There is no requirement to have your cards maxed out. Incurring debt that one intends to have discharged in a Bankruptcy could also lead to that debt not being discharged and could jeopardize the ability to receive a discharge altogether.
Answered on Mar 04th, 2013 at 3:38 PM