SandRidge Energy, Inc. (fka SDOCQ)

[mikoli007]

Not true every BK attorney may tell you to stop making payments but they will NOT tell you to max out every line of credit.

Under federal bankruptcy law, credit obtained by "fraudulent means" can be deemed nondischargeable.

Is running up your credit cards right before you file bankruptcy considered to be "fraudulent means"? Yes, particularly if you do so for the sole purpose of getting what you can out of the credit card before wiping all the debt out in bankruptcy.

As an example, suppose you visit with a bankruptcy attorney and make the decision to file Chapter 7; then, knowing you won't have to pay it back, you go on a spending spree with your Visa card, because you're basically getting it all for free. You get to keep the stuff, but you don't have to pay back the debt because of the bankruptcy. This is obtaining credit by fraudulent means -- when you use your credit card, the credit card company is lending money based upon your promise to repay it, and using it knowing you will not repay it is fraud.