New debts before bankruptcy
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Mrtoast
Posts: 14 Forumite
Hi
I'm considering bankruptcy still, someone advised me that any debts taken out 3 months or less before applying for bankruptcy could be considered as fraud, is this correct?
I have had payday loans in the period as I was trying to dig myself out of a hole and at that point I wasn't even considering bankruptcy I was just trying to keep my head above water
And advice would be appreciated
Thanks
I'm considering bankruptcy still, someone advised me that any debts taken out 3 months or less before applying for bankruptcy could be considered as fraud, is this correct?
I have had payday loans in the period as I was trying to dig myself out of a hole and at that point I wasn't even considering bankruptcy I was just trying to keep my head above water
And advice would be appreciated
Thanks
0
Comments
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Technically, applying for any loan/credit when you know you have no hope of paying it back would be fraudulent. However, the OR has seen many a BR who was so desperate that even basic essentials of food and rent were paid for with payday loans. If this is the case you have nothing to worry about.
However, if you are talking about a 5 star pre-BR cruise - expensive dental work - or a week at a luxury health spa then the OR could quite justifiably give you a BRO restriction and make BR very uncomfortable - and very long...0
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