An ethics question...

[aspenjim]

I'm sure this comes up frequently with BK attorneys... is it ethical to use a CC to pay the attorney, when you plan on BK?

[Pandora]

no and its not so much ethics as it is legality since you are technically insolvent

[Freddy03]

My BK attorney won't take credit card payments. I remember there was a poster here who got into big time trouble w/ her attorney let her pay with a CC that was being included in the BK.

[mrskal]

Mine wont take credit cards either, I am pretty sure you cant use one for that anyway. I think that would be fraud, you are charging something, and then trying to have the charges dishcharged in BK.

I did think of something else though, what if someone else paid for your attorney with their CC? Not sure about that one.

[AngelinaCat]

We had to use cash or a certified bank check. After all, we were insolvent or we wouldn't be filing BK...

[backtoschool]

You cannot use a credit card to pay a bankruptcy attorney because you are about to renege on the debt when you file bankruptcy and you know that you are insolvent and will not pay the debt. That is considered bankruptcy fraud and the credit card company can file an AP to make sure the debt is not dischargeable. (they will win). It is also a matter of bad faith and could get your case dismissed, since using credit when you know you are insolvent is adding to debt you know you cannot pay.

[aspenjim]

Okay, enough said. It was just a thought that I'm sure goes through many heads when thinking about BR. It seems like a catch 22. If you are bankrupt, how would you have cash to pay for an attorney? What attorney would represent you without being prepaid?

[mrskal]

None! Not that I have ever heard of at least. This is where most people stop paying bills (if they have not already) and start saving for the lawyer.