“Don’t Do It” is our advice.
Running up your credit cards prior to filing bankruptcy in Michigan ( in anticipation of filing ) may cause your debt to be non-dischargeable.  It may become non-dischareable on the grounds of “fraud” and you can be fined at a minimum. The bankruptcy trustee can review your purchases prior to filing for bankruptcy and may make these debts nondischargeable.
You should get legal advice concerning large amounts of credit card debt incurred for “luxury goods” right before your bankruptcy. Don’t buy that large screen TV before filing!
The banks themselves may also file for “Adversary proceedings in bankruptcy court” to contest the dischargeability of these debts. Therefore, you may end up being liable on these fraudulent debts despite the bankruptcy filing; and, worse, may also result in having your bankruptcy case dismissed.
Bankruptcy Code presumes it to be fraudulent and therefore nondischargeable: if: (a) a consumer incurs a debt to any single creditor totaling $500 for luxury goods or services incurred within 90 days before the filing; and, (b) cash advances on credit card obtained within 70 days before the filing are also presumed to be nondischargeable.
The bottom line – don’t “Charge it up” before filing and always work with a reputable bankruptcy attorney.
