Despite some of the negative media perceptions of personal bankruptcy, Indianapolis bankruptcy attorneys are witnessing more and more Americans turn to bankruptcy as a solution to distressing financial strain. Indianapolis bankruptcy attorneys generally offer their new clients some pretty sound advice when they are considering filing for bankruptcy. One of the things that Indianapolis bankruptcy attorneys may tell potentially new clients is to immediately watch their spending once they begin to consider bankruptcy as a viable option. It is very important not to splurge on unnecessary items just prior to filing for federal personal bankruptcy protection. In the event that you do go on a shopping spree and then subsequently try to file for bankruptcy then you could very well have those charges intentionally omitted from your claim and you will be responsible for making payment arrangements to those creditors independently. According to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, there are strict stipulations that you must actually prove that you need the financial assistance and part of that means that you must submit your credit card records for intense evaluation. The scrutiny of your financial records can seem a little bit invasive but is unavoidable when you are trying to attain federal assistance. Common forms of abuse of personal bankruptcy protection includes individuals who may purchase pricey and nonessential items just before filing for bankruptcy, taking nominal cash advances or transferring cash advances to their friends or family members in an attempt to elude the new bankruptcy laws. In some cases, depending on the extremity of the situation, your bankruptcy could be declined altogether. This can happen if a pattern of fraudulent activity or repeated attempts to defraud and abuse the bankruptcy system are discovered. Consistency is important here and you should try to retain the same type of lifestyle even after you decide to file for bankruptcy.
