Spending Money Before Filing Chapter 7 Bankruptcy
When considering filing for Chapter 7 bankruptcy, it is important to understand the implications of spending money before this process begins. While Chapter 7 bankruptcy can provide individuals with the opportunity to obtain a fresh financial start and eliminate some or all of their debt, there are still rules about how much money one can spend before filing for this type of bankruptcy.
First and foremost, it’s important to note that any spending of money prior to filing must be done responsibly; if an individual was to make large purchases with no intention to pay them back, they would likely be seen as fraud and may face legal repercussions. To stay within the law and protect oneself from fraud accusations, individuals should limit their pre-Chapter 7 spending habits only to those items necessary for daily living expenses such as rent/mortgage payments, utilities bills, grocery bills etc.
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