Careful Spending During Personal Bankruptcy

Oakland Bankruptcy Attorney Offers Advice to Chapter 7 Client

Last week in my bankruptcy office I was advising a client from Oakland regarding their Chapter 7 Bankruptcy and they asked me a very good question that I don’t hear enough. It concerned their spending during the bankruptcy process and if there was anything they should not do.

Don’t Overspend

It’s important, as I told my Oakland client, that you don’t spend money in a reckless fashion. A few years ago some bankruptcy lawyers in the Midwest got into trouble with the court because they told their clients facing bankruptcy to run up their credit cards as high as possible since the debt would be forgiven. That type of advice is not allowed and it’s not sound advice.

Certain large debts may not be dischargeable if incurred within 60 days of filing. Those include certain luxury items and cash advances. Also, you should never incur debts using false financial records.

Live Your Life

The primary thing to do is to stay away from excess, which most people naturally do, and live your life. As I told my client from Oakland, you’re filing for Chapter 7 Bankruptcy for a reason and it’s because you can’t meet certain financial obligations. With the automatic stay, clients sometimes find that they actually have some extra cash on hand. Those that do should use it wisely! I find in my law office in Oakland that most do just that.

Please contact our bankruptcy offices in California, serving Sacramento, Oakland, Santa Clara, San Francisco and other communities in Sacramento County, at info@california-bankruptcyattorney.com or at 888-589-1977 if you have any questions regarding bankruptcy.