Legal Question in Bankruptcy in North Carolina

Such activity is not illegal, per se, but would be considered fraud if it was shown that you did it at a time that you were insolvent. The second component, knowing you are going to file bankruptcy fulfills the next requirement that you did so with the intent to defraud creditors. The result could be that you would be the subject of an adversary proceeding, that is a suit in the bankruptcy proceeding, to hold the debt to not be discharged. Following the granting of a discharge from other debts, the creditor would have a judgment and could pursue collection remedies against you. The court would likely grant attorneys fees in addition to holding the debt outside of the discharge order. The Bankruptcy Code specifies that a creditor does not have to prove the elements of fraud if the charges were for more than $550.00 to a single creditor for luxury goods and services within 90 days of filing or $825.00 for cash advances within 70 days of filing. These amounts are scaled with inflation and may not be the exact number for any given filing, but you get the idea. The code facilitates proof of fraud in the obvious circumstances. In addition to remedies provided by the bankruptcy laws, common law fraud laws apply also.