Cash Advance on Credit card & Bankruptcy?
Zeus asked:
Hello,
I signed my bankruptcy documents yesterday but made a cash advance of $1400 2 days before to pay my lawyer. The only readon why I made the cash advance was because I had NO money to pay him but I have to file chapter 7.
Will that be any issue when filing? Will that be against me?
IF yes how can I explain this to the trustee?
If he doesn't agree with it what will happen?
Will they ask me to pay all back or what?
Please let me know
Taking a cash advance on a card you are about to include in bankruptcy is a HUGE no no. Taking on new debt immediately before filing can be considered fraud in some courts, and might get your whole case tossed out.
The one thing you have going for you is that it is a relatively modest amount of money, and for one specific purpose.
Talk to your lawyer about it. You may need to come up with the cash to pay this instead. Try borrowing it from friends or family in case the judge orders this amount due and payable.