RSSDon’t use credit cards before you file bankruptcy
Dec 31
it is probably a personal card and must be included. If the client has a business which is a corp and/or the card is in the busines name, then no….but most credit cards are in the person’s name. Preferential treatment of one creditor is a no-no. AND, even if you didn’t list the card, most of the larger credit card companies subscribe to BANKO or one of the other reporters who will inform the cc company that bankruptcy was filed….and then card is gone anyway. Using a credit card, or borrowing money in any other way, when a client is intending to file bankruptcy is fraud. Visiting a bankruptcy attorney is pretty strong evidence of intent. Giving me a down payment is proof. The fact of the visit is not protected by attorney client privilege. I tell my clients it is the same as going into a store, putting something very expensive under their coat, walking out without paying, and then being stopped by the state police in the parking lot. I tell them at their first visit, both verbally and in writing, that they cannot use any credit cards at all [other than cards provided by and with the bills directly paid by their non-insider employer]. They can’t even run a weekly charge at the corner store. Explaining the use of debit cards is a good way to educate them how to live after bankruptcy. Telling them to start living this way today, as soon as they decide to file and hire me, not paying cc bills and thus having money in their pockets immediately, is a good selling tool.
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Jan 03, 2010 @ 02:06:31
what a lengthy and in depth article but full of useful information