FAQ: Should I Max Out My Credit Cards Before Filing Bankruptcy?

Should I max out my credit cards before I file for bankruptcy?
What happens if I max out my credit cards before I file for bankruptcy?

NC Bankruptcy Lawyer in Charlotte North Carolina for Chapter 7 / Chapter 13

People will sometimes tell me that a friend told them that they maxed out their credit cards before filing for bankruptcy.   Or they will simply ask me if they should max out their cards since they are going to file for bankruptcy. 
 
Now, people don't really have to ask me this question because they already know the answer. 
 
No.  It is wrong.  It is taking money with the intent not to repay it. If you asked your grandmother if she thought you should do it she would probably spank you for asking the question. 
 
As for the legal answer, you can get into a lot of trouble if you intentionally max out your cards before filing for bankruptcy.  It may be deemed to be fraudulent.  The creditors can have the debts you ran up excluded from your discharge.  Your entire discharge can be put in jeapordy since the court can refuse to give a bankruptcy discharge to someone who doesn't deserve help and has committed fraud.  If your actions are bad enough, it may also be criminal. 
 
If you have done anything that you think fits into this discussion, you need to be sure to discuss it with your attorney to see if she can do anything to lessen the impact of your actions or protect you in some way. 
 
And certainly stop using those cards or borrowing more money.  You can't borrow your way out of debt, and it isn't right to keep borrowing at someone else's expense when you know you can't pay them back. 

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The Law Office of Susanne M. Robicsek is
a Federally Designated Debt Relief Agency
under the Bankruptcy Code.
I file bankruptcy cases for people in financial need,
and have been doing so since 1989.

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