bankruptcy luxury goods
How does bankruptcy work?
I was arguing with my friend. We were wondering about bankruptcy. The basic argument is, can’t I just take these dozens of credit card applications, get the cards, buy a half million dollars worth of stuff (or even better take a half million worth of cash) give it all to my girl friend and declare bankruptcy? Then I could live the life of luxury off of my sugar mama!
I don’t think this would work, I was just wondering why it wouldn’t. Thanks!
Hate to burst your theory but it wouldn’t work. They will not allow any debts to be dismissed in bankruptcy if they see a person has charged up a lot of debt over a short period of time and had never make payments or event attempted to repay, it is ILLEGAL
Also, bankruptcy is more of a “deferral” in repaying ones debts. Only Chpt 7 and in some cases Chpt 13 allows for discharging of ones debts and even those are limited.
Debts you incurred on the basis of fraud, such as lying on a credit application; Credit purchases of $500 or more for luxury goods or services made within 90 days of filing; Loans or cash advances of $750 or more taken within 70 days of filing will not be discharged and if found to be fraud, you could find yourself doing some time!
Hope this helps answer your theory.
