Do people live it up before filing bankruptcy

[Broke1234]

As of today I owe 58k on 7 cards...

Thing is I actually have 9 cards and available credit.

58k is an overwhelming amount and chapter 7 maybe the best option.

If I'm declaring bankruptcy, wouldn't it be to my advantage to use the other 2 cards and get more into debt?

[chloe0724]

That's considered fraud, and you would not be able to discharge it in your case.

Don't do it.

[Broke1234]

Chole, how much did you owe before you filed?

[chloe0724]

I don't see where that's relavent. That's a private matter.

[fltoo]

aahhhh, the mentality that threw us into BK reform

[WoodSprite]

If I'm declaring bankruptcy, wouldn't it be to my advantage to use the other 2 cards and get more into debt?

You certainly won't get that sort of advice on this forum. Most of us were scared to death before filing, and trying hard to figure out how to avoid it. What you're proposing is fraud, and could get you thrown in jail.

[keepmine]

The instant that bk is a viable alternative, is the moment you should stop using your cards.
I bk'ed $71K in cc debt. I filed in Oct.05 and my last usage was in Nov/Dec. 04. I stopped paying all cc debt in May 05.

[Cali]

When I filed, I had 150k avail credit left and I never thought about living it up.

[justbroke]

If I'm declaring bankruptcy, wouldn't it be to my advantage to use the other 2 cards and get more into debt?

As others have posted, "living it up" before filing is actually prohibited by the Bankruptcy Code. Better yet, what you propose is straight out fraud, if you never intended to pay it back.

If you feel like you're drowning, then stop charging and prepare for Bankruptcy. I had NO clue that I would be filing Bankruptcy 6 months ago, let alone 2 months ago, yet I stopped making any major purchases. I hadn't made any purchases on the majority of my cards in over 8 months prior to Bankruptcy.

The Act was created to give people a fresh start. It was not meant to entice people to "live it up" before filing. If you do "live it up", the creditors will view those accounts as fraudulently obtained or used, and will pursue you under nonbrankruptcy law! No Bankruptcy Chapter will protect you from that.

Don't think anyone actually used the term, but what you contemplate is Bankruptcy Fraud; it is a crime and is criminally punishable.

aahhhh, the mentality that threw us into BK reform

Exactly!

[Flamingo]

As of today I owe 58k on 7 cards...

Thing is I actually have 9 cards and available credit.

58k is an overwhelming amount and chapter 7 maybe the best option.

If I'm declaring bankruptcy, wouldn't it be to my advantage to use the other 2 cards and get more into debt?

It would be to your advantage, if you were smart and are actually able to file for bankruptcy, to stop using your cards and investigate your options to get out of debt. The new bankruptcy law that went into effect in October 2005 was geared to eliminate fraudulent filings (and also push more people into paying their debts and into a Chapter 13). Please also realize attorneys and trustees (and creditors) are not stupid. They will spot what you did a mile away if you do file. Also, people who abuse the system in any way (i.e., fraud, shoplifting, employee theft, etc.) just make it harder for all other consumers with higher prices everywhere, and that consumer would also include yourself.

[AngelinaCat]

We had stopped using our cards (only 2) at least 2 years before we even thought about filing. We cashed in my husband's k401 plan and at least 2 life insurance policies trying to stay afloat. So no sympathy from here.

[Frogge]

I truly understand your thinking, I will be one to say that I guarantee you a few people looked back at the remaining credit and thought --- sheesh -- what do I need/ want/ have to have before I do this thing..? I too have been there in this thinking.

The fact is, if you are up at night now, and have been.. wondering how you will make ends meet tomorrow, how you will shuffle/ transfer/ pay the next months bills.... are you really going to feel better off going up against a court of law to justify why you charged up a bunch of crap when you KNEW you were bankrupt?

Just something to think about. You'll have more opportunities later in life. Read stories on the post BK forum.

[justbroke]

Oh yeah, don't forget the the court views that you're "technically bankrupt" 90 days before filing. If you are truly done and going to be filing, just stop paying your bills now, because it isn't going to get better. Just don't go charging things up.

[Broke1234]

Oh yeah, don't forget the the court views that you're "technically bankrupt" 90 days before filing. If you are truly done and going to be filing, just stop paying your bills now, because it isn't going to get better. Just don't go charging things up.

Is this true? I mean I owe 58k on 7 cards... I feel kinda stupid paying the minimum balance since bankruptcy is probably looming. but if I don't pay the minimum amount due, what do I do with the money? Hide it under my bed!???

[justbroke]

Is this true? I mean I owe 58k on 7 cards... I feel kinda stupid paying the minimum balance since bankruptcy is probably looming. but if I don't pay the minimum amount due, what do I do with the money? Hide it under my bed!???

That's true too. In Ch.7 they'll take your money anyhow. It's a catch 22. A paradox it is!

Depending on the State you're in, different Exemptions exist, maybe even on cash in the bank.

What you probably need is a strategic bankruptcy (or more aptly for individuals, bankruptcy "planning"). You should consult a lawyer on the best way to get to filing. Some folks "prepare" for bankruptcy over several months so that their ducks are all lined up the right way (strategy). That's why many bankruptcies are "technical" proceedings.

That's why you see the Football player with the $10M mansion STILL after bankruptcy... whilst driving around in fancy cars and still spending money like he earns $500K a game... wait, I think he does. ;)