✅I’m Joseph C. McDaniel and I am a Board Certified Arizona Bankruptcy Attorney. My firm is a debt relief agency and I help both people and businesses file bankruptcies. If you’re interested in filing a bankruptcy in Arizona or have questions, please call our firm at 602-297-3025 or visit my free Bankruptcy blog at http://www.arizonabankruptcyblog.info/ and my website at http://www.josephmcdaniel.com/

Shall I Rack Up My Credit Cards to the Max Before I file My Chapter 7 Bankruptcy?
I don’t normally suggest that as a course of action.

Maxing out your credit cards just prior to filing is generally considered rude, crude, and fattening by the credit card companies themselves, and that only seems fair.

They set up a deal with you based on your expressed willingness to pay as agreed on the credit card, and loading them up to the limit just before filing a bankruptcy just looks bad.

That’s why there’s a presumption that if you rack up credit card charges prior to your bankruptcy filing, they won’t get scraped off. The relevant portion of 11 USC 523 is the following:

“(I) consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and
(II) cash advances aggregating more than $750 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable”


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