Credit Card Debt and Fraud
Fraud consists of anything false in your
petition to mislead the creditor who suffered a loss
because of your misrepresentation. Any credit card
purchases of $500.00 0r more within 90 days of your
bankruptcy are automatically considered fraudulent. Cash
advances of $750.00 0r more within 70 days of your
bankruptcy are also automatically presumed fraudulent. So
if you are intending on filing bankruptcy and recently went
out on a shopping spree or took out cash thinking you could
just wipe it out think twice. Bankruptcies are at an all
time high now and trustees are careful in analyzing
petitions for fraud. The closer the charges are to the
bankruptcy filing, the chances are higher that you never
intended to pay. Of course you are given a chance to
explain your circumstances, and if you honestly believed
that you could pay the debt back and can convince the judge
of that you are probably going to be off of the hook. So
avoiding the problems in the above situation would be to
wait more than the 90 and 70 days respectively before
filing. This way the burden of proving that it was
fraudulent will not be automatic because of filing to
early.