Is there a time limit as to when new debt is not eligible for bankruptcy?
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Is there a time limit as to when new debt is not eligible for bankruptcy?
We are contemplating filing bankruptcy but currently have to still use our credit cards for day to day necessities. Is there a time limit as to when we must stop accumulating more debt in order for it to be covered in the bankruptcy?
Asked on October 28, 2011 under Bankruptcy Law, Texas
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
There's no specific timeframe. A creditor can object to the discharge of any debt that was incurred any time if they can prove that at the time it was incurred, you did not intend or have a reasonable expectation of repaying that charge/debt. Obviously, the longer you make payments (and stop using your cards) prior to filing a bankruptcy case, the harder it will be for the creditor to prove you did not intend to repay. Also, any charges made for "luxury items" totaling over $600 in the 90 days prior to filing will be presumed to be non-dischargeable, as well as cash advances made within 70 days prior to filing.
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 12 years ago | Contributor
There's no specific timeframe. A creditor can object to the discharge of any debt that was incurred any time if they can prove that at the time it was incurred, you did not intend or have a reasonable expectation of repaying that charge/debt. Obviously, the longer you make payments (and stop using your cards) prior to filing a bankruptcy case, the harder it will be for the creditor to prove you did not intend to repay. Also, any charges made for "luxury items" totaling over $600 in the 90 days prior to filing will be presumed to be non-dischargeable, as well as cash advances made within 70 days prior to filing.
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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