Photo by Avery Evans on Unsplash. Presumptions of fraud make a credit card or cash advance debt harder to discharge—write off in bankruptcy. They’re usually easy to avoid. This blog post continues a series about the smart timing of your bankruptcy filing started back in July. (It’s been interrupted by urgent blog posts related to the pandemic—about unemployment benefits and … Read More
Using a credit card shortly before filing bankruptcy doesn’t seem right. The law agrees. Writing off this kind of debt can be a problem.
Creditors will be a little less likely to challenge the writing off of recent uses of credit.
If you can, don’t do cash advances during the holidays if you’re contemplating filing bankruptcy. If you do, understand the rules about them.
Avoid using credit during the holidays if you’re thinking about bankruptcy. But if you do so, or are tempted to, read this.
Most debts are written off–“discharged”–in bankruptcy. But not “fraud” ones. Watch out for creditors’ use of the “presumption of fraud.”
Because of financial tweaks to the Bankruptcy Code, as of April 1 you are a little less likely to have to repay some of your recent use of credit cards.
The risk that creditors will not allow you to discharge some of their debts can be minimized through smart timing of your bankruptcy.