Legal Question in Bankruptcy in Colorado
Check "kiting" & declaring bankruptcy
Due to increasing medical bills (last count $80,000.) I used some of my credit cards to help pay for my immediate needs and living expenses. Miscommunication resulted in my "kiting" checks to one of the credit card companies. Let me say, I do not do this sort of thing on purpose. There is a lot involved, but I need to know if I can declare bankruptcy because of that. I know check kiting is illegal, and I don't want to go to jail, but I can't pay my creditors anymore. Please help, I don't know where to turn.
1 Answer from Attorneys
Check "kiting" and bankruptcy
I doubt that you were check kiting to a credit card issuer. Check kiting is the process of depositing checks in numerous bank accounts, each one greater than the amount already in the account, in a pattern that each bank in the scheme thinks it is getting paid when, in fact, there is no money to back up the check.
Even if you were writing VISA checks to various credit card issuers to make your payments, there is no kiting because your debts just keep incrteasing.
Medical expenses are the chief cause of bankruptcy filings. It's too late, now, but the best plan is to file on the medical bills and get them discharged before any of the medical providers gets a judgment.
If you were abusing your credit cards, a bankruptcy judge may well refuse to grant you a discharge of the debt on the ground that it is an abuse of the bankruptcy process.
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