Most people are aware when their finances have degraded past the proverbial point of no return. In situations like this they may be tempted to run up the balances on any credit they have available right before making the decision to file bankruptcy. However common this idea might be, it’s important to ignore that impulse at all costs! Credit card charges that are incurred just before a bankruptcy filing may not be dischargeable.
Know Your Rights Concerning Bankruptcy
Debts that are made due to fraud, false pretenses, or misrepresentation cannot be discharged through a bankruptcy filing. Normally this type of malfeasance is hard to prove, but credit card companies will bring up the issue of recent charges. Their reasoning is simple. If the person knew they were going bankrupt but still charged purchases right beforehand, the transactions were made in bad faith. It pays to know your rights before filing bankruptcy. Luckily for people who are behind on their bills, filing bankruptcy is a way to get a fresh start financially.
There are two types of charges that are always problematic. They are:
- Any luxury items purchased 90 days prior to your filing.
- Cash advances made 70 days prior to the filing.
If you’re planning on filing for bankruptcy and have made charges like these, you may consider postponing your filing your plea after these timeframes have passed to avoid complications in your case. This is not a practical solution. In most cases, this is something you should get specific legal advice about. Your legal professional understands your position and can be trusted to give you accurate advice about your unique situation.
Expert Advice Can Help You Navigate Georgia Bankruptcy
It’s a simple matter of passing the presumption period that makes the biggest difference. Once that period of time has passed, the burden of proving any sort of malfeasance falls on the credit card companies. That’s a much tougher task for them to accomplish. In general, it’s fair to say that it’s not ideal to have either of these two types of charges on your hands when you file. No matter what your situation is, your bankruptcy attorney is there to help you navigate the waters of this complex legal matter.
Filing bankruptcy is a solution that helps millions of people each year to resolve long-standing financial problems. Regardless of whether you opt to restructure your debt by filing Chapter 13 bankruptcy or you have all debt wiped clean with a Chapter 7, you’ll find it’s easier to begin a new financial chapter in your life. Contacting a bankruptcy attorney is the best way to decide what approach is best for you and your family.