Are my recent credit care charges dischargeable once I file for bankruptcy?

While most credit card debt is dischargeable through bankruptcy, some credit card debt may be non-dischargeable. For example, credit card debt that was charged right before filing for bankruptcy may not be discharged. The bankruptcy code says that luxury goods that are over $500 and purchased within 90 days of filing for bankruptcy will be deemed non-dischargeable. Furthermore, the bankruptcy code also says that if a credit card company can show that you knew or had reason to know that you would not be able to pay back the debt, that debt will be deemed to be non-dischargeable as well.

Therefore, it is important not to go out and charge large amounts of money on your credit card around the time when you plan on filing for bankruptcy as it may be deemed fraud. Preparing for bankruptcy is not a license to go on a shopping spree.