When it comes to filing for bankruptcy, it is very common for individuals to include their credit cards in their filing. While this is great for individuals who are actually in need of financial assistance, some people actually decide to file for bankruptcy and then charge up a storm on their credit cards, intending for the card to be included in their filing. However, if they are caught in this scheme, they can be taken to court by the lender and found guilty of defrauding their lender(s) – that is, that the individual had no intention of paying back the lenders after or when they borrowed money.

In order to make sure that you are not accused of defrauding the credit card companies that you are involved with, it is best not to make any large purchases on your cards for ninety days prior to filing for bankruptcy. It may be tempting to go out and make an impulsive, expensive purchase the night before filing for bankruptcy, but you will almost always be caught and charged. Cash advances totaling more than $750 or luxury purchases over $500 in a ninety day time period before filing for bankruptcy are suspect.

As soon as you decide that you are going to file for bankruptcy, this is the time to stop using your credit cards. You will only be further compounding your debt. If you are involved in debt that you won’t be able to get out of, stop spending and stop using your credit card! If you have to use your card even after you have come to the decision to file for bankruptcy, you will HAVE to stop at the next logical point. After you go to a bankruptcy lawyer, do NOT use your credit card! If you are found to have used your credit card after going to see a bankruptcy lawyer this can get you in serious and substantial trouble. This is clear evidence that you were intending to defraud the credit card company.