Bankruptcy Law, Timothy Kingcade Posts

Beware of taking Cash Advances before Filing Bankruptcy

It’s important to remember that not all debt is dischargeable in bankruptcy. Almost all credit card debts are dischargeable, but when it comes to cash advances ‘The Bankruptcy Code’ provides that any cash advance, or combination of cash advances totaling more than $875 obtained within 70 days of the bankruptcy filing date are presumed to be non-dischargeable.
This rule, contained in Bankruptcy Code section 523(a)(2)(C)(i)(II), was imposed by Congress because it felt that consumers who obtained significant cash advances relatively close to their filing date knew, or should have known that they would be seeking bankruptcy relief. It was also designed to prevent consumers from running out and taking cash advances shortly before filing bankruptcy with no intention of paying on the debt.
If you are considering filing for bankruptcy and have recently taken out a large cash advance, it’s important you discuss this with an experienced bankruptcy attorney which can advise you of all your of options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.

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