How to Apply for More Credit Before Filing for Bankruptcy

Applying for credit before filing bankruptcy must be done carefully to avoid being accused of bankruptcy fraud, which is a federal crime punishable by incarceration and/or hefty fines. Anything charged 90 days or less before filing bankruptcy cannot be included in Chapter 7 (debt forgiveness) but can usually be incorporated into a Chapter 13 (debt reorganization) case. As long as you do not have a lot of late payments, you should be able to obtain some credit in the months preceding your bankruptcy plans.

Difficulty: Moderate

Instructions

1. Visit your local auto dealer if you wish to try to get a car loan before filing bankruptcy. Do not mention you intend to file bankruptcy. You can reaffirm any car loan in both forms of consumer bankruptcy, so getting accused of fraud regarding a vehicle transaction is fairly rare.

2. Visit the websites of credit card lenders such as Orchard Bank, HSBC Bank, Capital One and First PREMIER (see Resources section.) Apply for their credit card products if you do not already have them. If you still have good credit, you may also wish to approach other lenders.

3. Visit your local bank or credit union and ask for a personal loan before filing bankruptcy, also not mentioning you plan to pursue legal debt relief. Alternatively, you could also approach finance companies such as American General (see Resources section) and apply for personal loans.

4. Visit local payday loan lenders if you really need cash and plan to eventually file bankruptcy. However, keep in mind that many payday loan applications specifically tell you not to sign up for the loan if you are considering bankruptcy, and doing so could constitute fraud depending on how quickly you file your case after getting the loan.

Tips & Warnings

• Remember that using any credit within 90 days of filing Chapter 7 bankruptcy, which is legal debt forgiveness, can be considered bankruptcy fraud. Wait at least 90 days after using any credit or getting any loan to file your case.
• Do not write bad checks for goods or cash advances and hope they can be included in bankruptcy. Not only is this a crime, many bad checks cannot be discharged in a bankruptcy case.

Resources

• Orchard Bank
• HSBC Bank
• Capital One
• First PREMIER
• American General

Who Can Help Sponsored

• A Bad Credit Score is 598 or Below. Checking your own Credit Report won't affect your score! See instantly for $0 by Experian® www.FreeCreditReport.com