If you are considering filing bankruptcy, there are a few transactions you should avoid so you do not have any complications with receiving your discharge.
Credit cards and cash advances:
You should stop using credit cards if you know you are not going to pay them off. When you decide to file for bankruptcy, do not continue to use credit cards and do not take any cash advances. For example, if you decide that you are going to file for bankruptcy and within 90 days before filing you use your credit cards and take cash advances, those credit card companies could claim that you used the cards with fraudulent intent. They would argue that at the time you used the credit cards or took the cash advances you were never planning on paying them off, and therefore, you had fraudulent intent. When you decide to file for bankruptcy, stop using your cards and do not take any cash advances.
New loans prior to filing for bankruptcy:
If you apply for a loan just prior to filing for bankruptcy you may have to keep the loan. For example, if you receive a loan for a car within 90 days of filing bankruptcy you will most likely have to keep paying the loan. So if you know you’re going to file for bankruptcy, do not take on a loan unless you want to keep that loan.
The Orlando Law Group
-
Jennifer Englert Schmitt President
- January 17, 2024
- (407) 512-4394
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