NSW Credit Card Charges Before Filing for Bankruptcy?

[CameronW]

In the near future, I'm potentially looking at filing for bankruptcy due to very large credit card debts that have finally got on top of me. I'm concerned about purchases that I've made recently on my cards and how that will affect my bankruptcy? I also recently increased the limit on one card to try and keep my head above water.

Is there some sort of law to stop people maxing out their cards before they file for bankruptcy and what are the consequences?

 

[Victoria S]

Hi CarmeronW,

The higher the debt you incur now, the longer you will be an undischarged bankrupt. It will catch up on you eventually, so whether you save that money now and don't incur the debt or you take longer to pay it off while under financial restrictions as a bankrupt (and other restrictions - giving up your passport etc) its up to you. I don't know of any law against it.

 

[CameronW]

Hi CarmeronW,

The higher the debt you incur now, the longer you will be an undischarged bankrupt. It will catch up on you eventually, so whether you save that money now and don't incur the debt or you take longer to pay it off while under financial restrictions as a bankrupt (and other restrictions - giving up your passport etc) its up to you. I don't know of any law against it.

Thanks for your reply. I thought bankruptcy removed the debt? What would I be paying off? And isn't the bankruptcy finalised after 3 years? Surely there is something in place to stop a person going out and getting 20 credit cards and maxing them all out then declaring bankruptcy within a couple weeks?