Can I run up all of my credit cards before filing bankruptcy? 33 Answers as of June 20, 2011

I have no doubts that I will be filing bankruptcy. Would it be okay if I run up all of my credit cards before actually filing? I have a decent amount of credit left before they max out.

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The Northwest Debt Relief Law Firm
The Northwest Debt Relief Law Firm | Thomas A McAvity
Absolutely not.
Answer Applies to: Oregon
Replied: 6/20/2011
Law Offices of Michael T. Krueger
Law Offices of Michael T. Krueger | Michael Krueger
No it will not be okay to run up your credit card debt. Asking a question like this cheapens this whole system where experienced bankruptcy attorneys take the time to answer serious questions. Bankruptcy does not have the stigma it once did because there are laws that prevent individuals like you from cheating the system.
Answer Applies to: California
Replied: 6/20/2011
Jackson White, PC
Jackson White, PC | Spencer Hale
Not a good idea. Utilizing your credit cards with no intention of paying it back could be grounds for the debts not being discharged in the bankruptcy.
Answer Applies to: Arizona
Replied: 6/17/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
NO!!! This is fraudulent to user credit knowing it won't be repaid. If you do it anyway it will be grounds for a bankruptcy to be denied AND subject you to Federal criminal charges.
Answer Applies to: Virginia
Replied: 6/17/2011
Law Offices of Michael J. Berger
Law Offices of Michael J. Berger | Michael J. Berger
No. That strategy may lead to your debts being determined to be nondischargeable. This means that you would not be wiped out and you would still be legally obligated to pay them.
Answer Applies to: California
Replied: 6/17/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Sadly, this question reeks of bankruptcy abuse. Bankruptcy is for the honest debtor who find themselves in a situation they can not manage anymore. It is not intended for people to abuse the system by intentionally running up their cards and filing bankruptcy. I seriously considered ignoring this question this morning when I was answering the approximately 15 other legitimate questions I was asked. It is behavior like this that causes Congress to make the process more difficult (and hence more expensive) for the honest debtor.
    Answer Applies to: California
    Replied: 6/17/2011
    Daniel Hoarfrost, Attorney at Law
    Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
    No.Charges made within 90 days prior to filing a bankruptcy can be made nondischargeable by objection from the creditor.
    Answer Applies to: Oregon
    Replied: 6/17/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    No. No. No. Any credit transactions made within 3 to 6 months of filing can be a problem. If the credit card company can prove that you made any charges on your cards without the intent to repay it then they can make you repay it even after you have filed for bk. Credit card companies have records on your charging history. This is a big issue in some cases. Do not do this.
    Answer Applies to: California
    Replied: 6/17/2011
    Law Office of Asaph Abrams
    Law Office of Asaph Abrams | Asaph Abrams
    No.
    Answer Applies to: California
    Replied: 6/17/2011
    Law Offices of Steven A. Wolvek
    Law Offices of Steven A. Wolvek | Steven A. Wolvek
    No - creditors can sue you in bankruptcy for fraud - the U.S. Trustee can investigate if your bankruptcy was filed in bad faith. I NEVER recommend running up credit card debt before filing and would refuse to take any case where that was the issue.
    Answer Applies to: California
    Replied: 6/17/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Running up your cards before filing, in essence using the credit knowing that you are not going to repay it, can be considered fraud and give the credit card companies an opportunity to object to discharge of the debt that you incurred. The Court, the Bankruptcy Trustee and US Trustee will look at your actions within the last 6months to a year to determine if there is any actions they may want to take to prevent you from getting your discharge.
    Answer Applies to: New Hampshire
    Replied: 6/17/2011
    Law Office of Jackie Robert Geller
    Law Office of Jackie Robert Geller | Jackie Robert Geller
    If you make charges with no intent to pay, creditors can challenge your discharge. Don't do it.
    Answer Applies to: California
    Replied: 6/17/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Running up credit cards prior to filing is the quickest way to having *all*the debts declared "non-dischargable" by the bankruptcy court for filing without good faith.
    Answer Applies to: Indiana
    Replied: 6/17/2011
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    If you run up your credit cards before filing bankruptcy, each individual credit card creditor that you ran up can file an "adversary proceeding" against you, and ask the bankruptcy judge to deny the discharge of their individual debts, on the basis of fraud. That is, you made the charges when you did not intend to repay them. This would defeat the entire purpose of the bankruptcy. Not only that, but your case Trustee or perhaps the U.S. Trustee's Office could very well seek to have your bankruptcy case dismissed for abuse, or file an objection to the discharge of all of your debts. Finally, if you use a credit card that has been revoked or cancelled, you could have criminal liability for credit card abuse, a state jail felony here in Texas. Short answer: don't run up your credit cards right before filing bankruptcy.
    Answer Applies to: Texas
    Replied: 6/17/2011
    Breckenridge and Walton
    Breckenridge and Walton | Alan D. Walton
    Incurring debt with the intention of not paying it back is fraud. Creditors can sue you in the bankruptcy to have this debt declared non-dischargeable, meaning it will survive the bankruptcy.
    Answer Applies to: Michigan
    Replied: 6/17/2011
    Law Offices of John J. Ferry, Jr.
    Law Offices of John J. Ferry, Jr. | John J. Ferry, Jr.
    No. It is fraudulent to incur any new debt knowing that you intend to file for bankruptcy.
    Answer Applies to: Pennsylvania
    Replied: 6/17/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    There's a good chance you'd still have to pay those credit cards; also a smaller chance your bankruptcy would be turned down; and a tiny chance you could go to jail.
    Answer Applies to: Virginia
    Replied: 6/16/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    Do that and you'll see just how quickly the creditors contest their debts being discharged. And, they'll prevail, since what you are suggesting is fraud.
    Answer Applies to: California
    Replied: 6/16/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Not sure if this is a serious question or not, but sure you can run up your cards before filing bankruptcy. You can also rob a bank, shoot your neighbor and set fire to your church. However, there are consequences for each of these actions. In the case of running up your credit cards without the intent to repay, that is considered fraud and is a basis for denial of discharge of that debt. If it looks like a scheme, it could result in the denial of your entire discharge.
    Answer Applies to: California
    Replied: 6/16/2011
    Sussman & Associates
    Sussman & Associates | Mitchell Sussman
    In theory, yes. It could get you into trouble, if by doing it your creditor can show you had no intention of paying.
    Answer Applies to: California
    Replied: 6/16/2011
    The Law Office of Brian Nomi
    The Law Office of Brian Nomi | Brian H. Nomi
    No, that would be fraudulent.
    Answer Applies to: California
    Replied: 6/16/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    You have got to be kidding. That is outright fraud.
    Answer Applies to: California
    Replied: 6/16/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    No, that is fraud. There is a presumption that debts incurred within the 90 days before filing were incurred with no intention to repay them and therefore were fraudulent, particularly for luxury items or services. I fact, the creditors can even go back up to a year if they can prove you never meant to pay the debts back when incurred. You are risking not only being sued in bankruptcy and having to pay those debts back in full but also being denied a discharge. There is even a risk of criminal penalties in extreme cases. Don't even think about it! Just stop paying the credit cards but do not use any more credit.
    Answer Applies to: California
    Replied: 6/16/2011
    The Doan Law Firm
    The Doan Law Firm | Shawn Doan
    This would constitute bankruptcy fraud, you would find yourself with a $500,000 penalty plus 5 years imprisonment.
    Answer Applies to: California
    Replied: 6/16/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    If you charge up credit cards prior to bankruptcy several bad things can happen. Your right to a discharge may be denied. The debt can be determined to be nondischargeable. Criminal prosecution might result.
    Answer Applies to: California
    Replied: 6/16/2011
    Law Office of Eric Ridley
    Law Office of Eric Ridley | Eric Ridley
    No. The Trustee can, at their option, invalidate any expenses you run up prior to filing.
    Answer Applies to: California
    Replied: 6/16/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    NO! You should not max out your credit cards prior to filing bankruptcy. This is considered fraudulent activity and you will not receive a discharge of this debt should you decide to file bankruptcy. You should wait at least 90 days after making any major purchases before you file bankruptcy.
    Answer Applies to: Washington
    Replied: 6/16/2011
    Law Offices of Alexzander C. J. Adams, P.C.
    Law Offices of Alexzander C. J. Adams, P.C. | Alexzander Adams
    This is essentially fraudulent activity. Do not do this. Consult with a bankruptcy attorney first so you understand how it works.
    Answer Applies to: Oregon
    Replied: 6/16/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It is likely that your spending spree will cause a suit against you claiming you should be denied a discharge. That would mean that you would not get rid of your debts (possibly even the old ones) and would lose your ability to refile.
    Answer Applies to: Georgia
    Replied: 6/16/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Only if you want your creditors to sue you for fraud in the bankruptcy court.
    Answer Applies to: California
    Replied: 6/16/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    No. Obtaining credit with no intention of repaying it is fraud - and denying that you did it intentionally to defraud is not a defense. The Bankruptcy Code does not allow debts incurred by fraud to be discharged. Credit card use over $700 before filing is presumed under the Bankruptcy Code to be fraudulent. Credit card companies will likely file a bankruptcy lawsuit to keep the debt form being discharged and you will still be legally obligated to pay it after the bankruptcy is over.
    Answer Applies to: California
    Replied: 6/16/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    No, because if you make major purchases immediately before filing, or significantly increase your debt right before filing, then the court can refuse to grant a discharge as to that amount. If you are in my area and are looking for an attorney, please contact me for a free consultation.
    Answer Applies to: California
    Replied: 6/16/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    Once you have made the decision to file bankruptcy you should no longer use your credit cards. Running your credit cards up just before stopping to make the payments on the card could be considered fraud and could be excluded from the bankruptcy.
    Answer Applies to: California
    Replied: 6/16/2011
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