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Cash advances before bankruptcy

I have no job. I have been paying for my rent and groceries and stuff out of a line of credit which now is almost $20000 in the hole. I have other lines of credit and credit cards with balances of $0 that I can dig into if I wish (total credit limits for these is approximately another $15000). I have no assets other than tv, furniture and stuff which at garage sale value is less than $4000. I know that if I were to take cash advances from my other lines of credit and credit cards totalling $15000 today, and then declared bankruptcy tomorrow, I would be in major trouble for fraud, but here is my question….. what if I were to take these cash advances today, and wait a year before declaring bankruptcy, and use this cash I have to pay the rent and groceries and stuff for a while I look for a steady job. I would just let the creditors harass me on the phone for this money for a year since they can’t take anything from me anyways as I have no assets. If I went this route would I still get in trouble for fraud? Thank you.

One Response to “Cash advances before bankruptcy”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

The intent behind this site is not to help people how best to abuse the Canadian Insolvency System, but to provide real answers to people experiencing unfortunate circumstances. By prolonging this type of activity, regardless whether it has been 3 months or a year, you are putting yourself at risk of an opposition to a discharge which could potentially result in these debts not being cleared by a bankruptcy or a consumer proposal. My recommendation is to do yourself a favor, stop focusing on how long you can prolong the inevitable and deal the problem and contact a licensed trustee, this will make your life easier in the long run.