What is a Bad Faith Bankruptcy Filing?

Bad-Faith Filing

Creditors can object to a bankruptcy filing if it appears to have been filed in bad faith. Debtors that run up massive debt loads just before filing for bankruptcy are prime targets for an objection to the bankruptcy discharge. In most cases, these filings happen after the holiday season, when it is very tempting to purchase gifts with credit cards. Many New Year resolutions to file bankruptcy are derailed by this kind of spending.

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