Chapter 7 bankruptcy filings usually remove all credit card debts and other unsecured obligations. So why not load up on merchandise before filing for bankruptcy? There are several reasons why this is not the best idea.
If you charge more than $1,150 within two months before filing, your trustee and the bankruptcy court may prohibit you from getting rid of that debt—even if it is unsecured—since those moneys appear to the court to be wasteful debt. However, the court could pardon credit card purchases that were for medical bills or other urgent, nondiscretionary purchases.
Try not to hide secured or nonexempt assets from the bankruptcy court by putting them on your credit cards. Some individuals attempt to include a few thousand dollars of owed taxes onto cards, hoping it will get discharged. This is unethical and can result in major logistical/legal issues for bankruptcy filing.
After bankruptcy, there is a chance your company will take away your credit card. However, if you start with a zero balance, you have a better chance at keeping your card.
The bankruptcy attorneys at JacksonWhite have years of experience helping clients discharge their debts and advising them on how to avoid making similar mistakes. If you’re ready to seek out a new beginning, contact a skilled Phoenix bankruptcy attorney. Call (480) 648-8975 to schedule a free consultation with Mesa bankruptcy lawyer Benjamin Skinner.