While facing all the consequences of being bankrupt, an applicant might want to keep one credit card out of the expunge proceedings as they are losing all their credit flexibility. They will always think that this one card can’t affect much. In their defense, a bankruptcy applicant thinks that keeping one card for paying while throwing the rest in the plea for protection is no big deal. However, if you are pulling this type of maneuver, then you need to know that it can potentially ruin your bankruptcy application while costing you jail time. This is why our Pittsburgh bankruptcy lawyer always advises you otherwise.Bankruptcy Fraud is a Serious Crime
If you are opening up a credit card or loan while you are just a few weeks away from filing bankruptcy, then you are committing bankruptcy fraud. Practically, the thing is, you are agreeing to pay off a debt, that is your credit card, within a stipulated time of few years while you know that you are going to file bankruptcy. Hence, it is a crime. This looks like a calculated move while you know that the court will expunge the debt while you don’t have to pay it off. Buying or purchasing products or services with the willful intention of not paying the debt at all is surely a crime. This can be considered as theft which you are not allowed to commit when you are filing bankruptcy. If you attempt to do so, your application will turn void while you might also get a prison statement for potentially five years. Along with that, you might have to pay a substantial fine. That is why our Pittsburgh bankruptcy lawyer advises you to understand how dangerous this can be.Forms Completed Under Penalty of Perjury
While filling up the form for bankruptcy, you are agreeing that you are obligated to tell the truth to the state. Putting false information in a legal document like bankruptcy forms can be tantamount to perjury which is considered to be a federal offense. There will be a place in the document to list all your debts and you have to do that. You must not keep one single credit card out of the list which you want to use by keeping the account open. A shrewd judge will give you a real hard time and a harsh sentence in case you do something similar.Judgment Against You for the Debts You Owe
In case you get a credit card even when you are filing for bankruptcy, your creditor can sue you for the debt you owe. Your bankruptcy won’t save you from this lawsuit as this is not listed in the file. As a result, you might come out of bankruptcy with zero credit and a summary judgment leading to property liens and wage garnishment or the credit card of loan you owe. This can make it difficult for you to find a job or housing. Bankruptcy generally ensures a clean slate for you. But in this situation, getting that fresh start won’t be possible anymore.
If you are going through a similar situation or willing to file bankruptcy, then you need to come to us at Pittsburgh bankruptcy law group. Our Pittsburgh bankruptcy lawyer will help you and guide you at every step to make the right financial decision.