Credit Cards and Christmasby Katheryn E. Hancock, Attorney on 12/14/13
I can't say how many times someone has come in for a consultation and said, "My friend told me that I should run up my credit cards before I file bankruptcy. Is that a good idea?" My answer, of course, is "no." Charging luxury goods, vacations, or taking out large cash advances prior to bankruptcy can lead creditors to file an adversary action in your bankruptcy case. An adversary action is when a debtor in bankruptcy is sued by a creditor who wants the judge to determine the debt should be paid back. But please don't panic if you put some toys for the kids, groceries, or gas on your credit card recently and are considering bankruptcy. Give me a call or send me an email and I'd be happy to answer any questions you have about the bankruptcy process. Thanks!