Unless you are facing a very serious medical or other emergency, it should be relatively easy for you to stop using your credit cards before filing bankruptcy. In fact, if you are seeking a fresh start, you should start getting used to living without debt. So, retire your credit cards. Don’t use them if you want bankruptcy relief!

When an individual uses credit cards or borrows money within 90 days before obtaining bankruptcy relief, there is a legal presumption that the borrowing was done with the intent to “defraud” the creditors. Under bankruptcy law, debts that were incurred "fraudulently" do not get discharged. This means that they do not get wiped out. Basically, this means that a consumer might get other debts wiped out, but will be stuck with the debts incurred 90 days before filing bankruptcy.

Of course, like most legal issues, there are complications, exceptions, and procedural considerations. If you have borrowed money recently, and need bankruptcy protection, or if you want to learn more about your rights, please contact us, and we will be happy to discuss this in a free, confidential consultation.