Can I load up on debt just before the bankruptcy?
Ruby Norta Gumapac Assistant at Ascent Law LLC
The answer is not necessarily. While bankruptcy attorneys are not legally allowed to advise debtors to “load up” on debt, they can advise debtors to prudently incur debt. For example, if a debtor does not have a car, he or she may be unable to get to work and become unemployed. In addition, prudent debt incursion is beneficial to the debtor and all creditors.
Taking on more debt just before filing for bankruptcy should be avoided. Not only is it a violation of the bankruptcy code, but creditors can object to your discharge if they feel that you didn’t acquire the debt for necessary purposes. This is called presumptive fraud. Therefore, you should avoid taking on any new debt during the 90-day window before filing for bankruptcy.
Unethical
It’s unethical to load up on debt just before filing for bankruptcy. This practice is usually done by companies who are about to file for bankruptcy and are trying to make up for lost profits. This practice is a form of fraud and may be considered a crime. In some cases, however, companies can restructure their debts and get back on their feet.
Bankruptcy is a serious matter, and many people shy away from filing for bankruptcy. This process is perceived as unethical and shameful by many people. However, some people abuse bankruptcy laws to their personal advantage. In one case, a young person intended to max out her credit cards and then file for bankruptcy. This way, she would be free of her financial obligations and be able to keep all of her purchases.
Illegal
Although bankruptcy is a legal process, it is not advisable to load up on debt just before filing. It can be dangerous to add new debt, especially if you have a home equity line of credit. Rather, you should suspend all debt when filing for bankruptcy. Taking on more debt may result in your being unable to get your car or other transportation needs.
If you need an Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
When you need a Divorce Lawyer, contact this law firm:
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Bountiful, Utah
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Bountiful, Utah
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Mueller Park Trail a popular hiking trail located in Bountiful,Utah
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Location in Davis County and the State of Utah.
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| Coordinates: 40°52′47″N 111°52′18″WCoordinates: 40°52′47″N 111°52′18″W | |
| Country | United States |
| State | Utah |
| County | Davis |
| Settled | September 27, 1847 |
| Incorporated | 1892 |
| Founded by | Perrigrine Sessions |
| Named for | Bountiful (Book of Mormon) |
| Government | |
| • Mayor | Kendalynn Harris |
| Area | |
| • Total | 13.22 sq mi (34.23 km2) |
| • Land | 13.19 sq mi (34.17 km2) |
| • Water | 0.02 sq mi (0.06 km2) |
| Elevation | 4,797 ft (1,462 m) |
| Population
(2010)
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| • Total | 42,552 |
| • Estimate
(2019)[3]
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43,981 |
| • Density | 3,333.41/sq mi (1,287.07/km2) |
| Time zone | UTC−7 (MST) |
| • Summer (DST) | UTC−6 (MDT) |
| ZIP code |
84010, 84011
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| Area codes | 385, 801 |
| FIPS code | 49-07690[4] |
| GNIS feature ID | 2409885[2] |
| Website | http://bountifulutah.gov |
Bountiful is a city in Davis County, Utah. As of the 2010 census, the city population was 42,552, a three percent increase over the 2000 figure of 41,301. The city grew rapidly during the suburb growth of the late 1940s, 1950s, and 1960s and was Davis County’s largest city until 1985, when it was surpassed by Layton. Bountiful is Utah’s 15th-largest city.
Although a part of the Ogden–Clearfield metropolitan area, it serves as a bedroom community to Salt Lake City and the surrounding area. However, due to the very narrow entrance into Salt Lake County, roads between the counties often reach near-gridlock traffic during rush hour. The FrontRunner commuter rail has been running since April 2008, and the Legacy Parkway was opened on September 13, 2008. These were built to help alleviate the traffic load on Interstate 15 through the Bountiful area.
Can I Load Up On Debt Just Before The Bankruptcy?https://t.co/GNqTdsb5OT pic.twitter.com/DeeHv6d0s9
— Ruby Norta Gumapac (@NortaRuby) November 1, 2022
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