I Heard That ... I Could Max-Out My Credit Cards
Before I File Bankruptcy
Before I File Bankruptcy
This is a really, spectacularly horrible idea.
In reality, as soon as you start seriously considering bankruptcy, you should stop using credit. Borrowing more money when you are already having trouble paying back you debts might be considered fraud.
And if you do it deliberately because you don't intend to pay it back -- you want to wipe it all out with bankruptcy -- at minimum the court can refuse to wipe out the new debt you incurred. It could deny you a discharge of all your debt. And it could potentially be a federal crime.
In reality, you should stop using credit cards as soon as you know you'll have trouble paying them back. Stop digging the hole deeper! Think of it as your first step in freeing yourself from the debt slavery you are trapped in. Start living on what you bring in without the credit boost to your spending capacity and see what you can truly afford and what you truly cannot.
Further reading: Beware Recent Usage
In reality, as soon as you start seriously considering bankruptcy, you should stop using credit. Borrowing more money when you are already having trouble paying back you debts might be considered fraud.
And if you do it deliberately because you don't intend to pay it back -- you want to wipe it all out with bankruptcy -- at minimum the court can refuse to wipe out the new debt you incurred. It could deny you a discharge of all your debt. And it could potentially be a federal crime.
In reality, you should stop using credit cards as soon as you know you'll have trouble paying them back. Stop digging the hole deeper! Think of it as your first step in freeing yourself from the debt slavery you are trapped in. Start living on what you bring in without the credit boost to your spending capacity and see what you can truly afford and what you truly cannot.
Further reading: Beware Recent Usage
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