Planning on Maxing Your Credit Cards Before Filing Bankruptcy?

Why Maxing Out Credit Cards Before Going Bankrupt Is Always a Bad Idea

Bankruptcy is a legal procedure aimed at providing relief to individuals and businesses drowning in debt. However, the idea of maxing out credit cards with the intention to file bankruptcy afterwards can be a serious mistake. This practice is not only ethically wrong, but it could also lead to severe legal consequences.

A Clear Case of Fraud

Maxing out your credit cards before bankruptcy can be considered as a sign of fraudulent activity. Bankruptcy courts, creditors, and trustees take such actions very seriously.


Note: If you’re caught in such activities, your discharge from bankruptcy could be at stake. You might even be ordered to pay back all or part of the credit card debts as a condition of discharge.


Credit Card Company’s Review

Most credit card companies are vigilant about their customer’s spending patterns especially if they are on the verge of bankruptcy. They meticulously review all transactions made on your card prior to the bankruptcy filing.

# Any transaction made three months before the filing is open for scrutiny.

Consequences of Irresponsible Spending

If you recklessly run up your credit card balances and then file for bankruptcy, you could be in for a rude shock. There is a high probability that you will have to repay the debt.

Tip: The best course of action is to stop using your credit cards if you find yourself in financial distress. Focus on getting your debts under control instead of exacerbating the situation by spending more money.

It’s important to remember that further spending won’t alleviate your financial stress. In fact, it could make things significantly worse.

Financial Help

If you find yourself unable to manage your debts, it’s time to seek professional help. Don’t hesitate to reach out for a free, no-obligation consultation. Remember, there’s always help available.


  • First, acknowledge your financial situation.
  • Stop further usage of credit cards.
  • Seek professional help.


In Conclusion

Filing for bankruptcy is a serious decision that should not be taken lightly. It’s crucial to understand the implications and consequences of your actions prior to filing. Planning on maxing your credit cards before filing bankruptcy? Think again. It’s crucial to act responsibly and seek professional advice when required.

Contact us today for a free, no-obligation consultation. We’re here to help you navigate through your financial distress.

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