Running up your credit card balances when you intend to file bankruptcy is a fairly clear case of intent to defraud your creditors. If you do so, your trustee, creditors or the Office of the Superintendent of Bankruptcy have the ability to discharge you from bankruptcy and you could be ordered to pay back a portion or all of the debts put on the credit cards as a condition of discharge.
Most credit card companies will carefully review all purchases and other activity on your card that occurred before the bankruptcy filing. Any transaction made three months before the filing is reviewable. If you run up your credit card balances and then file bankruptcy, you will likely have to repay the debt. It is best to just stop using your credit cards if you are having financial. Do everything you can to get caught up. Don’t dig the hole deeper by spending money. It won’t make you feel better, and it can make things a whole lot worse.
If you find yourself in this situation, and you can’t dig yourself out on your own, contact us today for a free, no-obligation consultation. We’re here to help.
