Lewis & Monroe, PLLC
Free One-Hour In-Office ConsultationsFree One-Hour In-Office Consultations

Can you run up your credit cards before bankruptcy?

Here is the situation: you are ready to file for bankruptcy, but you see you still have room on a few credit cards before they reach their limit. You think to yourself, “If they are just going to wipe out all my debt, then what’s the big deal with charging them to the max now?” It may be an inevitable to think that way, however, the bankruptcy courts are well aware of this practice are already wise to these sorts of plans.

When the court views your spending habits prior to filing for bankruptcy, they can plainly see any shopping-spree you were on. It would be very easy for the court to determine you had no intention to pay back the debt on those items. Most likely, you will still be held responsible to pay off that debt even if the bankruptcy goes through. Worst case scenario, the court may see this as fraud and decide to deny your bankruptcy request altogether.

The people who file for bankruptcy have a specific reason for choosing that course of action. Most of the people who file for Chapter 7 do so for the following reasons:

  • Their income has fallen to a level where they are unable to support themselves or their family. Credit cards are then used for essential purchases such as food, fuel, etc. When minimum credit card payments cannot be met, higher interest is added on and the problem gets worse.
  • Loss of job. Even when a spouse loses a job it can have a dramatic effect on finances.
  • Unable to keep up with the mortgage payment and hope to avoid foreclosure.
  • A medical emergency. This can be from mounting bills or the inability to work due to a health-related problem.

Bankruptcy is not a solution for credit card abuse. People who file for bankruptcy are usually hardworking individuals trying to do the right things before financial trouble overwhelmed them. If you use credit dishonestly prior to a bankruptcy, it could leave you in the same predicament with no meaningful option to relieve your debt.

No Comments

Leave a comment
Comment Information
ABA Defending Liberty Pursuing Justice American Bankruptcy Institute The Florida Bar 1950 CFAWL Criminal Florida Association For Women Lawyers Orange County Bar Association
Email Us For a Response

Contact The Firm In Orlando, Florida

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Lewis & Monroe, PLLC

651 Rugby Street
Orlando, FL 32804

Phone: 407-917-4147
Fax: 407-246-0008
Map & Directions