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2

The other answers address a number of reasons that this is a bad/immoral/illegal/unethical idea. I'll touch on one of the specific legal constructs that will make your proposed approach fail. Clawbacks A "clawback" is a method by which a bankruptcy trustee can reverse or void certain transactions that occurred before you filed for bankruptcy. Step ...


-4

There is also another thing - unless you are at the rock bottom of the financial pole and have no intention to ever get more, declaring yourself bankrupt has the side effect of wiping off your assets. You do not want to declare yourself bankrupt if you have a million USD on the bank. It is an emergency setup for people that get messed up by life (which DOES ...


7

Other answers have pointed out "what's stopping people from doing it" from the legal perspective. It is something some people are doing and it isn't clear how many are, aside from extrapolating from bankruptcy filings. Also think about the user experience, if you are shut out from the credit market for 7-15 years, this will always overlap with ...


34

What you are describing is a fairly clear cut case of fraud. There is a big difference between (a) acquiring debt and subsequently being unable to pay it back, and (b) acquiring debt knowing in advance that you never intend to pay it back. The latter is within the definition of fraud for most legal systems. In the UK for example, this would fit within the ...


53

You could get away with stealing some money doing this. However, there are mechanisms in place to limit the damage you could do. First, you need to have good credit in the first place before you will be able to borrow significant amounts of money. This requires paying bills for a while before you flip the switch and quit paying your debts. To maximize the ...


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