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Chapter 7 & 13 | Consumer Bankruptcy

SHOULD I MAX OUT MY CREDIT CARDS BEFORE I FILE BANKRUPTCY?

The answer to this question is "no."

The bankruptcy law says that if you incur a debt with the intention of discharging it in bankruptcy, the debt is fraudulent and can't be discharged. You're asking for trouble if you deliberately "max out" credit cards before a bankruptcy filing.

However, normal credit card use before bankruptcy is not fraud. Nearly everyone who files bankruptcy has used credit cards to charge basic necessities such as gas, food, or clothing. As long as you've charged nothing unusual, your creditors will have no grounds for complaint.

A bankruptcy case which involves unusual or excessive credit card charging in the recent past requires careful analysis by an experienced lawyer. Our office can help you understand the different bankruptcy law considerations involved in such a case.

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