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When contemplating filing bankruptcy, sometime individuals will max out their credit cards right before filing. This is a mistake, and could jeopardize your entire case.

Some debts in bankruptcy are non-dischargeable, meaning you will still be responsible to repay your debts even after your bankruptcy case is over. This includes luxury items charged to your credit cards within 90 days of filing. Someone may think, max out the cards and wait 90 days and then file. This too will not work.

Any debt that you ever incurred without the intent to repay is also non-dischargeable.  

By maxing out your cards you may risk the discharge not only on the maxed out cards but all your debt.

If you are thinking about filing bankruptcy stop using credits and talk to a lawyer.

If you can no longer meet your financial obligations bankruptcy may be able to relieve the stress related with too much debt.

There are two concerns if you have recently charged a lot on your credit cards prior to filing bankruptcy.

First, luxury goods charged on your credit cards that exceed about $450 within 90 days of filing bankruptcy are not dischargeable in bankruptcy. Luxury items are not defined in the bankruptcy code, however, the law tells us that luxury items do not includes charges for things that are reasonably necessary for the support of you and your dependents. Therefore, food, gas, and clothing for you and your family are not likely viewed as luxury items.

If you have recently charged luxury items on your cards then you may need to wait up to 90 days until you should file bankruptcy.

Second, anything charged to your credit cards without a present intent to repay is non-dischargeable in bankruptcy. This is a more difficult issue. This means that at the time you made the charge to your card you thought to yourself that you would never repay the debt. This is very difficult to prove for creditors.

If you are considering bankruptcy I would be happy to sit down with you to discuss all your opinions.