Best Not to Borrow Before Filing Individual Bankruptcy in Indiana

December 25, 2011 3:28 pm Published by

Since I’m a debt consolidation lawyer, clients will often ask for my help with their financial affairs.  That’s true even if they aren’t planning to file personal bankruptcy in Indiana.  Quite loan applicationoften, though, I find it necessary to issue an important caution:

If you get to the point where filing individual bankruptcy in Indiana does appear to be your only viable option, you’d better avoid borrowing money for six months before you file.

It’s counter-intuitive, I know.  People don’t want to get to the point of filing bankruptcy, so they keep trying to keep their financial “boat” afloat by using credit cards to pay for everyday expenses and even get to the point of needing payday loan debt help.

The problem is (and every good bankruptcy attorney in Indiana knows this one well) – in most cases, debt incurred during the six months preceding a bankruptcy filing can be excluded from being discharged or forgiven through bankruptcy (if the creditor can prove fraud).

Obviously there are extenuating circumstances.  One of the Columbus bankruptcy lawyers in the Zuckerberg bankruptcy law offices recently worked with a single mom who’d bought a new washer and a new bed for a child.  Two months later, the mother lost her job.  She became so stressed out that she fell and broke a bone.  Now she had medical costs she couldn’t handle. She couldn’t make the minimum payments on the credit card she’d used for the washer and some of the hospital bills. However, the debt she incurred through the purchase of the washer and the payments to the hospital were allowed to be included in her bankruptcy (since at the time of the purchase there was no fraudulent intent – the mom didn’t know she would lose her job or fall!).

The point I’m trying to drive home to Bankruptcy in Indiana readers is how crucial it is to seek the help of an experienced Indiana lawyer for bankruptcy at the first signs of financial trouble. 

That way, if filing either bankruptcy Chapter 7 or filing under Chapter 13 bankruptcy law is in the cards, you won’t have sabotaged your own case by making borrowing mistakes!

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This post was written by Mark Zuckerberg

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