When you choose to file for bankruptcy, you have to list all of the debts that you have in your name. This means that you can’t pick and choose which ones are going to be part of the case. Because of this, you have to think about how this will impact your life by looking into what each creditor can do that will affect you. For example, there is a chance that a doctor’s office might decline to see you again if you can’t pay the bills and they are discharged in a bankruptcy.
One consideration when you file for bankruptcy is that you don’t want to be accused of fraud. It is assumed that if you make luxury purchases of more than $725 within 90 days of filing or take out a cash advance of more than $1,000 within 75 days of filing that you did so with the intent to defraud the creditor. If the court finds this is true, it deems the debt nondischargeable. In order to fight this, you have to show that you had no intention to file your case at the time the transaction occurred.
Typically, the process of determining if something was done fraudulently will start with a complaint of nondischargeability that is filed by one of your creditors. After looking at the facts, the court will determine whether you must pay the debt back or not.
Remember, this is only one aspect of bankruptcy that you have to think about. Others can also impact whether this is the right decision for you or not. You must consider all factors before you make your final decision.