Can I Load Up On Debt Just Before The Bankruptcy?
Can I load up on debt just before the bankruptcy? Ruby Norta Gumapac The answer is not necessarily. While bankruptcy attorneys are not legally allowed to advise debtors to "load up" on debt, they can advise debtors to prudently incur debt. For example, if a debtor does not have a car, he or she may be unable to get to work and become unemployed. In addition, prudent debt incursion is beneficial to the debtor and all creditors. Taking on more debt just before filing for bankruptcy should be avoided. Not only is it a violation of the bankruptcy code, but creditors can object to your discharge if they feel that you didn't acquire the debt for necessary purposes. This is called presumptive fraud. Therefore, you should avoid taking on any new debt during the 90-day window before filing for bankruptcy. If you need an Bankruptcy Lawyer , please call this law firm for a free consultation. Ascent Law LLC 8833 S Redwood Road Suite C West Jordan UT 84088 (801) 676-5506 Utah Lawye...