Share

Bankruptcy Law Blog

Tuesday, December 19, 2017

Bankruptcy: Holiday Shopping Spree

Going On A Holiday Shopping Spree Before Filing for Bankruptcy? You May Get More Than You Bargained For.

Christmas gifts for your loved ones are one of the easiest items to justify splurging on. It’s simple to ignore how far over budget you are going when you think about the look of pure joy you will be putting on someone else’s face. But if you are having financial troubles and thinking about filing for bankruptcy, it is important to stick to your budget. Going on a holiday shopping spree and maxing out all your credit cards before filing for bankruptcy could theoretically land you in prison.


Taking on debt that you don’t plan to pay back is fraud. Plain and simple. It’s illegal, and if you get caught, you could wind up behind bars. Prison is typically reserved for the worst offenders (think scams in the hundreds of thousands of dollars), but there is nothing in the law that says lower-level offenders can’t be imprisoned.


Most people who commit credit card fraud don’t end up in jail though. For lower level offenders, there are two more likely punishments. First, you might have your case dismissed and be barred from filing for bankruptcy for several years. Second, you could be forced to pay back any debts the court determines are fraudulent instead of having them forgiven. Some courts have ruled that credit card charges for anything other than basic items like food and gas are fraudulent, so it is best to be cautious about taking on extra debt before filing for bankruptcy.


If you are struggling to make it through the holidays before filing, you might want to reconsider. You don’t want to risk racking up more debt in case it is viewed as fraudulent, and filing could take a weight off your shoulders, particularly if you are getting a lot of harassing calls or nasty notes from your creditors. And, it’s a little bit counter-intuitive, because a lot of people think New Year, new start, but if you expect to get a raise or a bonus at work, or will receive cash as a gift from relatives, filing before that money comes in may help you hold on to it.


Archived Posts

2018
2017
2016
2015


Bankruptcy Law News

Padgett and Robertson assist clients with Bankruptcy, Personal Bankruptcy, Consumer Bankruptcy, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy and The New Bankruptcy Law in Mobile, Alabama and throughout southern Alabama. Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”



© 2018 Padgett & Robertson
4317 Downtowner Loop N., Mobile, AL 36609
| Phone: 251-342-0264

Personal Bankruptcy | The New Bankruptcy Law | Testimonials | About Our Firm | Bankruptcy | Client Resources | Getting Started

Facebook

Attorney Website Design by
Zola Creative


Alabama State Bar Association Regulations require the following: "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers." 11 U.S.C. 528 of the U.S. Bankruptcy Code requires the following: "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”