beautiful bird asked:
My friend is planning on filing bankruptcy and she wanted to make big purchases using her credit card prior to filing. How safe is it? What are the contingencies?
please… objective responses only. thank you.
5 comments ↓
If she does this, they may disallow those charges and make her pay anyway.
So, she is going to rip off companies because she made bad choices?
Many times the retailer ends up having to give the money back to the credit card company, and I believe that they now can go after their assets.
Usually if you make large purchases right before a bankruptcy, you will still be held responsible for the purchase. In the eyes of the court, you are trying to steal from creditors by doing it.
Tell your friend to stop trying to get over on people and start learning to live within her means anyway Take Care
Knowing that she intends to file for bankruptcy protection and has no intention of paying for the items makes her guilty of fraud, plain and simple. She can be ordered by the judge to return the items, or the store can (and probably will) ask that those purchases not be discharged in the bankruptcy filing. It’s pretty stupid of her, unless she doesn’t mind being ridiculed in court, and it doesn’t speak much for her character.
It means the judge at the bankruptcy court is going to be a lot harder on her. And the court will likely not discharge any debts run up since about 6 months before the filing.
That is, she will have to pay for those items anyway and the amount she has to still pay on the old debts will be a lot higher. Someday she will be very sorry she made those purchases.
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