What causes red flags to credit card company,s when u file chapter-7 bankruptcy.?

Question

For a example.$2000 cash taken out 1 month before bankruptcy.I heard 95% of credit card company,s don,t show up for the 341 meeting.

Answer 1

The bankruptcy IS the red flag. A $2000 cash withdraw may be considered fraud by the court. If the 95% number is true, the reason is that if you qualify for bankruptcy, your unsecured creditors probably won't be getting anything anyway. Why should the pay someone to go to a meeting where they will be told the won't get enough to cover the cost of showing up?

Answer 2

Charging up credit cards any time near a bankruptcy sets off red flags and you will see yourself involved in an adversary proceeding with them objecting to discharge. Just don't do it. Stop using your credit cards months before you file.

Answer 3

if it was like 20,000 taken out one more before bankruptcy, you would be facing fraud charges already.