Using credit cards to pay bills

[flower]

I'm to the point that I am having to pay credit card and other bills by using my credit cards. Is that going to cause a problem when I file. Will they say that I am abusing the system? That's why I am wanting to declare bankruptcy. This is happening because I have an illness. I'm not irresponsible. What should I do? Thanks.

[poorme]

First, welcome to the board! You'll find many ideas here and a lot of helpful information.

Many here have been where you are - and have managed to get through some of the toughest days of our lives. Sorry to hear you have an illness - are you working or have any source of income? If not, it's a matter of time before your card option will play out. Read - and read more - in the sticky notes and each forum on filing bk and managing your creditors. Your best plan will find it's way to you.

In your filing, you'll have to show all of your bills and income, etc. As long as your credit card expenses haven't been frivolous, you should be fine.

[CATCHMEIFYOUCAN]

I'm sure we have all done what you are doing, borrowing from Paul to Pay Peter, etc.

Agree w/poorme .. you'll get plenty of good insight about BK through the forum.

Good Luck, Catchmeifyoucan

[SinkingFast]

It's a hard thing to do, but you need to stop charging expenses and stop paying CC bills.

Learn to live totally on cash.

Keep paying your rent/mortgage and utilities. Pay your car payment if you have one and want to keep the car.

Pay for everything else with cash.

Leave the cards at home. Cut them up if you have to. But don't use any Credit any more.

[ChainSmokin]

[flower]

I'm sure that I am going to be harrassed if I stop paying my credit cards.
Will my attorney, when I file tell the creditors to stop harrassing me?

[Spartan]

1. I am quite sure that if the amount is greater $600, then you will have problem with preferential treatment, IF you file for BK within the 70-90 days window.

2. Yes, once you file, all collection effort will have to cease. No more harassment.

3. SinkingFast has solid advice.

[Spartan]

Since you have filed, then the debt will be discharged, lawsuit dismissed, and judgement vacated. IF there is a pre BK judgement, it will need to be vacated at the local court.

SOL is no longer of relevance, once you file.

All unsecured debts are discharged in the BK, whether you list it or not. So, you don't have to worry about unsecured debt that pops back up from no where. They are considered discharged in the BK.

[SinkingFast]

I'm sure that I am going to be harrassed if I stop paying my credit cards.
Will my attorney, when I file tell the creditors to stop harrassing me?

There's a 70/90 Day Rule. 70 Days on Cash Advances and Convenience Checks use. 90 Days on CC charges. If you file within that time frame, the burden of proof that the charges were not fraudulent falls on you. Outside that time frame, the burden of proof shifts to your Creditors.

And, as Spartan said, there's a Preferential Payments rule too. If you pay any Creditor $600 or more within 90 days of filing, the Trustee can go back to those Creditors and get those monies back for the benefit of all your Creditors. That's Unsecureds payments. Not payments for Secureds or Priority payments. Like your house payment, car payment, or payments for back taxes.

Generally speaking, you're Creditors won't call you until you've missed a couple of payments, maybe 3. When they start calling, use Caller ID or an answering machine to screen your calls. Answer when it's family and friends. Don't answer when it's a number you don't recognize.

Once you file BK, you come under the protection of an Automatic Stay. Your Creditors will immediately stop calling you. If Creditors do call, they are violating the Automatic Stay. That's breaking Federal Law.

[ChainSmokin]

Thanks Spartan!

As you may have seen in my other post I’m quite concerned about missing a creditor, this eases my mind a bit.

[cschon911]

We used our credit cards for basic living expenses

Including Gas for cars, Food, and Perscriptions. Unfortunately, we did
have to pay back one of the credit cards in full. We filed Bankruptcy
last Oct. The lawyers representing credit card companies or the credit
card companies themselves DO NOT care what you charged. If they
are recent charges, they can say you committed fraud. Knowing that you
could not repay the debt but using the credit card anyway.

[tradewiz50]

Why? Your signature indicates you already filed.

[ChainSmokin]

Why? Your signature indicates you already filed.

Hi tradewiz50,

I did a quick file (just the Creditor Matrix, and pre-counseling) it officially got the clock ticking, but I still have a little time to do some tweaking with my other schedules etc. I am also curious as what to expect from these older debts as I go through the process. I should have been more clear, thanks for the reply!

[flower]

CSCHON 911, did you file before the 90 day window was up or afterward? I was under the impression that if you wait to file after 90 days of not using your cards then the credit card companies cannot accuse you of fraud. Am I understanding this correctly? My illness causes brain fog, so sometimes my comprehension isn't the best. With my income, there is NO WAY I could begin to pay back any credit card if they thought the usage was fradualent. How would that situation be handled then? Thanks to anyone that can answer this.

[HHM]

There are two types of fraud, so-to-speak.

There is "presumed" fraud, which are charges made for non-necessities in excess of $600 (cummulative) made within 90 days prior to fling BK.

Then there is "regular" fraud, which is any transaction outside the 90 day period where the creditor has the burden to prove that you made the charge without a reasonable expectation of being able to pay it back.

However, given the expense involved for a creditor to file an objection to discharge of their debt, outside the 90 day presumption period, the balance usually needs to be in excess of $2,000.