If I must borrow money this week for a deposit to pay for medical care but I know I’m insolvent and can’t pay back, can this hurt a future bankruptcy?

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If I must borrow money this week for a deposit to pay for medical care but I know I’m insolvent and can’t pay back, can this hurt a future bankruptcy?

Charged attorney fees to credit cards during custody battle because ex used meth and lived with sex offender. Will take several years keeping expenses at poverty level to pay off. But now my 8 year old needs intensive mental health treatment (hallucinations, self harm, property damage, threatens to kill self and others). Insurance benefits have been exhausted so now I am self pay. The hospital requires a $3500 deposit in 2 days or he lose his spot in program. Can’t get 401k money by then but I could charge my last credit card. Could this hurt chance at bankruptcy? Dismissal for abuse?

Asked on November 15, 2011 under Bankruptcy Law, Texas

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

It won't cause your bankruptcy case to be dismissed, but it could cause that particular creditor to object to the discharge of that portion of the debt you owe.   If a creditor can prove you did not intend to repay the debt at the time the debt is incurred, then a judge can find it non-dischargeable.

If the debt is incurred within 90 days prior to filing the bankruptcy case for certain "luxury" items, the presumption is that it WAS incurred without intent to repay, so it's always best to wait at least 90 days after the questionable charge before filing.  That certainly doesn't guarantee you success, but it lessens the risk.   You want to put as much time between the date you use the card and whenever you file your bankruptcy case.  Of course, making minimum payments for a few months wouldn't hurt either.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

It won't cause your bankruptcy case to be dismissed, but it could cause that particular creditor to object to the discharge of that portion of the debt you owe.   If a creditor can prove you did not intend to repay the debt at the time the debt is incurred, then a judge can find it non-dischargeable.

If the debt is incurred within 90 days prior to filing the bankruptcy case for certain "luxury" items, the presumption is that it WAS incurred without intent to repay, so it's always best to wait at least 90 days after the questionable charge before filing.  That certainly doesn't guarantee you success, but it lessens the risk.   You want to put as much time between the date you use the card and whenever you file your bankruptcy case.  Of course, making minimum payments for a few months wouldn't hurt either.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr


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