{"id":1894,"date":"2010-06-26T21:52:52","date_gmt":"2010-06-26T21:52:52","guid":{"rendered":"http:\/\/www.covstravels.com\/?p=1894"},"modified":"2015-04-11T23:04:16","modified_gmt":"2015-04-11T23:04:16","slug":"cash-advance-file-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.duncanlawonline.com\/staging\/8350\/cash-advance-file-bankruptcy\/","title":{"rendered":"Can I Get A Cash Advance Before I File Bankruptcy?"},"content":{"rendered":"<div class=\"videopost\">\n<h3><span style=\"text-decoration: underline;\">What Is A Cash Advance?<\/span><\/h3>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.duncanlawonline.com\/wp-content\/uploads\/2010\/06\/AA-Father-Daughter-on-Computer1.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"alignleft size-medium wp-image-5017\" style=\"margin-left: 0px; margin-right: 10px;\" title=\"Father and Daughter on Computer\" src=\"https:\/\/www.duncanlawonline.com\/wp-content\/uploads\/2010\/06\/AA-Father-Daughter-on-Computer1-201x300.jpg\" alt=\"Father and Daughter on Computer\" width=\"201\" height=\"300\" \/><\/a>Let us begin by giving a brief over view of the term cash advance. Many of us have heard the term but don\u2019t know exactly what it means.\u00a0 A cash advance is often referred to as a payday loan.\u00a0 A cash advance can be obtained through a credit card or charge card issuer.\u00a0 It is seemingly a loan taken out against a credit card that you already have.\u00a0 Those with a credit card and cash advance service are able to receive cash from an ATM, bank, or some other financial institution.\u00a0 This really depends on the type of credit card and whether their cash advance services are available.\u00a0 Many people often confuse the advance as free money, but it is certainly not.\u00a0 This has to be paid back to the creditor and one of the biggest challenges is the high interest.\u00a0 The interest on a cash advance tends to be much higher when obtaining it through a credit card.\u00a0 You are not able to take out a cash advance for the full available balance on the credit card.\u00a0 However, this doesn\u2019t mean that you aren\u2019t going to be charged high amounts of interest on the loan.\u00a0 This will cause the monthly payments on the credit card to eventually increase.<\/p>\n<p style=\"text-align: left;\">Generally speaking, cash advances made within 90 days of filing bankruptcy are not going to be wiped out.\u00a0 Cash advances within 90 days of filing not only pose a problem with court, but also the creditor, who could potentially seek an adversary proceeding.<\/p>\n<h3>\u00a0<span style=\"text-decoration: underline;\">Cash Advances and <\/span><span style=\"text-decoration: underline;\">Chapter 13 Bankruptcy<\/span><\/h3>\n<p style=\"text-align: left;\">Keep in mind, the <a title=\"Chapter 13 Bankruptcy Lawyers in NC\" href=\"https:\/\/www.duncanlawonline.com\/bankruptcy\/bankruptcy-types\/chapter-13-bankruptcy\/\" target=\"_blank\">Chapter 13 bankruptcy<\/a> is also recognized as a repayment plan.\u00a0 In a Chapter 13 bankruptcy it isn\u2019t likely that a creditor will file an <a title=\"What is an Adversary Proceeding in Bankruptcy?\" href=\"https:\/\/www.duncanlawonline.com\/what-is-an-adversary-proceeding\/\" target=\"_blank\">adversary proceeding<\/a> against you because of a cash advance.\u00a0 However, this doesn\u2019t mean that a creditor can\u2019t file an adversary proceeding if they choose to. The creditor may also have the option of objecting to confirmation of your Chapter 13 Plan, if your Plan does not to propose to repay the amount of the advance back to the creditor with whom you took the cash advance. This is obviously up to the creditor who the cash advance was taken out with.\u00a0 The most important thing to remember is generally speaking, cash advances within 90 days of filing may pose a problem with the bankruptcy court.\u00a0 For example, if you decide to file a Chapter 13 bankruptcy and have taken out a cash advance within 90 days preceding the filing, the court is going to look for any fraudulent behavior.\u00a0 If you took out a cash advance knowing that you were going to file bankruptcy, then you are going to have a tough time arguing that it was not fraudulent behavior.\u00a0 If it\u2019s possible to wait, then the longer you wait after having taken out a cash advance to file, the better.\u00a0 Many people facing tough financial situations are already feeling stressed, there is no need to add something else to the mix.<\/p>\n<h3><span style=\"text-decoration: underline;\">Cash Advances and Chapter 7 Bankruptcy<\/span><\/h3>\n<p style=\"text-align: left;\">Since a <a title=\"Chapter 7 Bankruptcy Lawyers in NC\" href=\"https:\/\/www.duncanlawonline.com\/bankruptcy\/bankruptcy-types\/chapter-7-bankruptcy\/\" target=\"_blank\">Chapter 7 bankruptcy<\/a> is different than a Chapter 13, and not a repayment plan, we will focus on a couple of different points.\u00a0 If the cash advance was made within 90 days of filing, the debt is most likely not going to be wiped out in a Chapter 7 bankruptcy.\u00a0 First of all, it looks suspicious to the courts when a recent cash advance was made before the filing.\u00a0 This may also pose a problem with the creditor who may decide to pursue an adversary proceeding for a cash advance that was made around the same time as the filing of the bankruptcy.\u00a0 An adversary proceeding is also known as a lawsuit in bankruptcy court.\u00a0 If the cash advance was made well past the 90 days, then there is a possibility of the debt being wiped out.\u00a0 This would depend on a couple of things, timing and amount.\u00a0 A large cash advance taken out shortly before filing bankruptcy is obviously going to look suspicious.\u00a0 The courts are not only going to look at the amount, but also the timing between the actual withdrawal and filing of the bankruptcy.\u00a0 As mentioned above, the longer you are able to wait to file the bankruptcy, the better.<\/p>\n<p style=\"text-align: left;\">If you have any questions about any cash advances you have taken out in the last year, you should speak with your <a title=\"Bankruptcy Lawyers in NC | Duncan Law, PLLC\" href=\"https:\/\/www.duncanlawonline.com\/bankruptcy\/\" target=\"_blank\">bankruptcy attorney<\/a>. If you are contemplating filing bankruptcy, it is best not to take out any cash advances.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>These are common questions that many people have about bankruptcy. In an effort to provide you with information we have provided these frequent questions. However, it is important to realize that each state has different rules and these answers are not meant to be legal advice. Contact a bankruptcy attorney to learn more.<\/p>\n","protected":false},"author":3,"featured_media":1833,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"video","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4171,4168],"tags":[],"class_list":["post-1894","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-bankruptcy-basics","category-credit-and-debt","post_format-post-format-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cash Advance Before Bankruptcy | Duncan Law<\/title>\n<meta name=\"description\" content=\"Cash advances within 90 days of filing bankruptcy are rarely discharged and can trigger a lawsuit in court. Here&#039;s what NC filers need to know before they file.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.duncanlawonline.com\/cash-advance-file-bankruptcy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can I Get A Cash Advance Before I File Bankruptcy?\" \/>\n<meta property=\"og:description\" content=\"These are common questions that many people have about bankruptcy. In an effort to provide you with information we have provided these frequent questions. However, it is important to realize that each state has different rules and these answers are not meant to be legal advice. 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