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Dave the wave
12-26-2003, 01:53 PM
Are there rules regarding debt incurred just before BK? In other words, are
there any legal restrictions on how much additional unsecured debt one might
take on just prior to filing for BK? Would it matter if the additional debt
was for personal items or business related items?

Buckwheat
12-27-2003, 06:11 AM
Dave the wave wrote:
Are there rules regarding debt incurred just before BK? In other words, are there any legal restrictions on how much additional unsecured debt one might take on just prior to filing for BK? Would it matter if the additional debt was for personal items or business related items?

Yes. Incurring any debt without the intent to repay is fraud. Luxury item
purchases and cash advances are treated differently than necessaries.

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