Bankruptcy and recetly-accumulated debt

March 3rd, 2009 by Questions

My husband and I will be declaring bankruptcy soon based on a combination of consumer debt and a self-employment venture that really didn`t go well. Right at the teetering point where we were grasping at straws to find ways to pull through, we were sent an AmEx card and used it for vehicle repair, to cover an amount owed on bicycle repair and some necessities like groceries and kids` clothes. We have been unable to make payment on this card and it will be sent to collections this week. We are now even more afraid of being accused of fraud of some kind than we are of the actual process of declaring bankruptcy. Will be AmEx be included when we declare or are we in serious trouble with this newer and never-paid card? Thanks 🙁

Posted from: British Columbia


One Response to “Bankruptcy and recetly-accumulated debt”

, A licensed trustee said:

The Amex card will be included, but you may still be in trouble. It’s a question of when you knew (or reasonably should have known) that you were in trouble – if you continue to use credit from that point forward the Court has the right to require you to repay a portion (perhaps all) of the debt.

Discuss this fully with your trustee before you file so that you will be prepared and informed of the possible consequences.

If you didn’t deliberately do something wrong then you won’t be in too much trouble – if the Court decides you did this “on purpose”, well things won’t go well…

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