Filing for bankruptcy is a viable solution to the burdens of unmanageable debt. The decision to file, however, is a major one that has a profound impact on your financial life, and you should plan carefully in the weeks and months leading up to your filing. One thing you should never do, however, is spend substantial amounts of money via your credit lines with the goal of discharging these debts in your impending bankruptcy. Here are a few reasons why you should avoid this.

3 Reasons to Avoid Spending Money Before Filing for Bankruptcy

1. Creditors Can Challenge Your Right to Eliminate Your Debt

If you've racked up a significant amount on your credit cards in the months immediately preceding your bankruptcy, you're going to send up some red flags to your creditors. Once they receive notice you are pursuing relief, they might start looking at where, when, and how much you've spent in the previous months. If they suspect something is amiss, they could take legal action and challenge the bankruptcy discharge.

2. The Bankruptcy Trustee Can Dismiss Your Case

During the proceedings, a bankruptcy trustee will go over your debt in detail and ensure all outstanding balances meet the necessary criteria for filing. Should they find any suspicious credit card use, they have every right to deny your discharge. Spending huge amounts of money in the months before a bankruptcy without providing an adequate explanation will be considered a fraudulent act on your part, and you could face legal consequences, such as fines or imprisonment.

3. It's Unethical

Finally, the issue of pre-bankruptcy credit card spending is an ethical one. If you dole out big sums of money on credit, which is literally money you do not have, and you expect those bills to be wiped away in your bankruptcy, you are essentially stealing. There may not be a specific "victim" from whom you are stealing, but you are doing something unethical in not honoring your commitment to pay and abide by the terms of your filing.

If you are considering filing for Chapter 7 or Chapter 13 bankruptcy, let attorney Jeremy Bueker of Bueker Law Firm provide you with the legal protection you need and deserve. For more than 14 years, he has been representing clients throughout the Stuttgart, Arkansas, area. Call (870) 673-1313, visit his firm's website, or send them a message via Facebook to schedule a free consultation with a bankruptcy lawyer today.