Search Site
Menu
Should You Max Out Credit Cards if You Plan on Filing for Bankruptcy Soon Anyway?

Should You Max Out My Credit Cards Before Filing Bankruptcy In Georgia?

You should not max out credit cards before filing bankruptcy in Georgia. Purposefully maxing out credit cards prior to filing can be fraud and have your case thrown out of court, lead to fines, or even get you jail time.

Here is what you need to know:

Should you max out my credit cards before you file bankruptcy?When you file for Chapter 7 bankruptcy, credit card debt is typically among the types of debt you will be able to have discharged. For some people, there is a temptation to completely max out all of their credit cards if they already know they are going to be filing for bankruptcy. The plan would be to get as much stuff as they can — essentially for free — and then having the debts completely wiped out.

However, bankruptcy courts closely analyze credit behavior before a filing. By looking at your credit card statements in the months before you filed for bankruptcy, courts will determine whether you seemed to have had any intent to ever pay back your debts.

Wild spending is a major detriment

If you were to engage in this strategy, you would most likely be found to have committed bankruptcy fraud. At the very least, your bankruptcy case would likely be thrown out of court and your debts would not be discharged. But more seriously, if found guilty, you could also be forced to pay significant fines, adding on to your debts, or even serve jail time.

What if I transfer gifts or money?

You might also be guilty of fraud if you attempt to transfer gifts or money to your family or friends while knowing that you would soon be filing for bankruptcy. There are many laws in place specifically designed to prevent people from making gifts for the purpose of devaluing an estate in the eyes of creditors. Even if you don’t expect to get these gifts back after the bankruptcy, they are still considered fraudulent if you made them while being unable to keep up with your bills.

If you have fallen under insurmountable debt, the best thing to do is stop using your credit cards and file for bankruptcy protection. You may have your debts forgiven and be granted a clean slate to rebuild your credit, while avoiding potential accusations of fraud.

For further information on responsible credit use before, during and after bankruptcy, contact the trusted Georgia attorneys at Jeff Field & Associates online or at 404-381-1278 today.

Leave a Reply

Your email address will not be published. Required fields are marked *

Videos
Our Attorneys
Client Reviews
  • google
    5.0/5.0

    This was a hard thing to do but Chris made it easy and explained everything in a way I understood the process. I would recommend anyone having to go through this to contact this office! Casey was great as well and the communication kept the whole tim...

    Read more

    Beth Carlin

  • google
    5.0/5.0

    The staff made a very stressful situation much easier to cope with. They treated me with kindness and respect. Chris and Laura are very professional and knowledgeable.

    Read more

    Anita York

  • lawyers
    5.0/5.0

    The Entire team at Jeff Field and Associates were so helpful throughout the entire process. They were quick with responses and handled everything. They dont make you feel bad about your decision, and provide very helpful advice. Mr. Fields was always...

    Read more

    Client

  • google
    5.0/5.0

    We started our process in October 2021, the process was fast and easy. Casey Brown was there to answer questions via email expeditiously. In 3 months our case was discharged and we are extremely thankful and excited for the future. This truly was a...

    Read more

    Joan Bunting

  • lawyers
    5.0/5.0

    I enjoyed working with Jeff and his team. They were always there to help and answer any questions that I had in a timely manner. I highly recommend Jeff Fields and Associates.

    Read more

    Client

See all reviews
Contact us

Please fill out the form below and one of our attorneys will contact you.

Quick Contact Form