In bankruptcy, certain luxury goods and cash advances made within a specific time period before the filing are presumed fraudulent and non-dischargeable. Under U.S. bankruptcy law (specifically, 11 U.S.C. § 523(a)(2)(C)), the following transactions are presumed non-dischargeable: Luxury Goods or Services: If a debtor purchases luxury items within 90 days before filing for bankruptcy, and […]
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In a bankruptcy case, certain actions can be considered fraudulent, which could result in serious consequences like the denial of a discharge, fines, or even criminal charges. Here are some common mistakes that could be viewed as fraud by a bankruptcy court: 1. Incurring Debt with No Intention to Repay Recent Credit Card Usage: Making […]
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Yes, it is possible to move into an apartment with bankruptcies on your credit, though it may be more challenging. Landlords often check credit reports during the rental application process, and a bankruptcy can raise concerns about your ability to pay rent consistently. However, there are several strategies you can use to improve your chances […]
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Repaying relatives before filing for bankruptcy can be tricky. Generally, payments to family members within a certain period before filing (typically up to one year) can be viewed as preferential treatment. This means that these payments might be reversed or deemed fraudulent by the bankruptcy court. It’s important to consult with a bankruptcy attorney to […]
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In the U.S., there isn’t a specific minimum amount of debt required to file for bankruptcy. The decision to file is generally based on whether you can afford to repay your debts and if bankruptcy is the best option for your financial situation. However, if your debts are relatively small, bankruptcy might not be the […]
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When you really look at your debts, its much cheaper to pay a Bankruptcy Attorney a flat one-time fee VS paying all your creditors over time. Additionally, if you don’t file, you face the risk of being sued and having to defend your case in a civil court, your wages being garnished at up to […]
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Before filing for bankruptcy, there are several actions you should avoid to prevent complications or potential allegations of fraud. Here are some key things to avoid: 1. Incurring New Debt Credit Card Charges: Making large purchases or taking out cash advances on credit cards right before filing can be seen as fraudulent. Creditors may argue […]
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Taking out large cash loans or incurring significant debts right before filing for bankruptcy can be seen as fraudulent behavior. This is because the bankruptcy court may interpret it as an attempt to discharge debts you never intended to repay. If the court determines that you took out a loan with the intention of filing […]
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Running up your credit cards before filing for bankruptcy can be problematic. Here’s why: Potential Fraud: If you make large purchases or take cash advances on your credit cards shortly before filing for bankruptcy, the court or creditors may view this as fraudulent behavior. They could argue that you never intended to repay these debts, […]
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Yes, most of your credit cards will likely become null and void after you file for bankruptcy. Here’s how it typically works: 1. Chapter 7 Bankruptcy: Debt Discharge: In Chapter 7 bankruptcy, most of your unsecured debts, including credit card debts, are discharged. This means you are no longer legally obligated to pay those debts. […]
