Things to be aware of if facing bankruptcy 4

To continue my line of posts on pre-bankruptcy caveats, do NOT take credit card cash advances near a filing date. This is covered by 11 U.S.C. Sect. 523(a)(2)(C)(ii), a provision that lists exceptions to discharge.  This provision carves out an exception of debt from discharge of any credit card cash advances in excess of $925.00 in the seventy (70) days prior to filing. The exact language of the statute still says $750.00, but like most of the numbers in the bankruptcy code, it gets adjusted upward for inflation each year.

If you have done this and already filed, do not get too concerned right away. The credit card company would need to file an action in the bankruptcy to determine that the particular charge is not to be discharged. If you have done this, but you have not yet filed, then wait the seventy days before filing if at all possible. If you have not done this, don’t! No reason to invite scrutiny.

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