Running-up a credit card shortly before you file.
Anytime you borrow money with no intention or ability to repay it’s considered a fraud. This means that once you have decided to file bankruptcy, stop using the credit cards. Cash advances and luxury purchases within 70 days prior to filing bankruptcy send up red flags and create a legal presumption of fraud. For this reason, we often recommend delaying the bankruptcy filing until after the 70 day period expires. The timing of the bankruptcy is often quite important.
