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is there any legal restrictions on “last minute debt” which is not dischargeable by bankruptcy?
Question : is there any legal restrictions on “last minute debt” which is not dischargeable by bankruptcy?
it seems to me that if a person knew they were going to have to file bankruptcy, a decision which isn’t made overnight, they could conceivably intentionally overdraft their bank account, take out payday loans, etc, seemingly without consequence…
is there in legal protection against this sort of thing?
(save the opinions about the ethics of this sort of thing, I need a factual legal answer)
state is Idaho if that matters
overnight payday loans
Best answer:
Answer by Anthony
That would be bankruptcy fraud. It would be instantly detected and the perpetrator would end up in federal prison.
Yes, there sure are protections against this type of activity. One of the things that will happen at the creditor’s meeting is the trustee assigned to your case will make you swear an oath to tell the truth. One of the questions that will be asked is if you made any major purchases, borrowed any money, in the last few months leading up to your filing. This meeting is recorded and you are under oath.
Any recent large purchases or any recent borrowed money is likely not to be discharged if the trustee feels you have abused the system by accumulating this debt at a time when you knew you were likely to file.