Considering filing bankruptcy? Live in a high unemployment state such as Alaska or Michigan? Now is the time to meet with an Alaska bankruptcy attorney or Michigan bankruptcy attorney or an attorney for what ever state you live in to get free consultations. If you are considering using your legal right to file bankruptcy then you are starting to do more with your financial future than you most likely ever did with your financial past. In other words, without you really knowing it you most likely are at beginning stages of your bankruptcy planning; which now brings us to a legal and ethical question:
Is pre planning a bankruptcy considered fraud?
The answer is really subjective to what your current circumstances are. If you are applying for loans and using credit cards to pay to pay for your school with the intent to file bankruptcy then yes, this would be considered fraud. However, if you have several loans and credit cards and you begin researching your options on what you need to do to file bankruptcy then that is not considered fraud. One thing you should be aware of is once you visit a bankruptcy attorney and you continue to use your credit cards by charging and purchasing things then could open yourself up to fraud charges. The credit card or loan servicer would have to prove you intentionally purchased and borrowed after visiting a bankruptcy attorney.
What is the point of pre planning a bankruptcy?
Preplanning starts with meeting with an attorney and reading bankruptcy forums. You really want to know if anything will cause you problems when you file. If you field by your self with the help of an attorney you could end up finding out that a credit card balance transfer you made 3 months ago to a lower rate may not be able to be discharged. You may also find out the money that was loaned to you by your parents, friends or grand parents that you were paying on could be considered as preferential payment and therefore dragging them into your bankruptcy case even though they did not have anything to do with it. Meeting with an attorney can help point out little pitfalls pop up and could save you thousands because your attorney tells you need to wait 90 or 120 days to file to prevent any problems. You just effectively pre planned your bankruptcy by following your attorneys’ advice allowing you the ability to eliminate your credit card debt.