Odd advice from my Attorney

[businessisbad]

Has anyone else had this advise from their attorney. In addition to get a vehicle prior to filing my attorney advised me to apply for three major credit cards. All with lenders I do not do business with at this time and he strongly advised applying for one through my credit union as he says they are less likely to check your credit periodically. The attorney advised NOT to use ANY of the cards until the BK is discharged. His reasoning for three cards is the chances of one surviving is very good. I still have excellent credit its just the business is dying a slow death and I cannot keep it afloat much longer. Any thoughts on this strategy?

[GreenInkOnPaper]

I don't think that would work. In the current credit crunch, I'm comfortable saying that EVERYONE is going to be doing alot of credit checks.

[CompTweaker]

Has anyone else had this advise from their attorney. In addition to get a vehicle prior to filing my attorney advised me to apply for three major credit cards. All with lenders I do not do business with at this time and he strongly advised applying for one through my credit union as he says they are less likely to check your credit periodically. The attorney advised NOT to use ANY of the cards until the BK is discharged. His reasoning for three cards is the chances of one surviving is very good. I still have excellent credit its just the business is dying a slow death and I cannot keep it afloat much longer. Any thoughts on this strategy?

Some questions....Get a vehicle as in have a secured asset by making payments? Or pay for a vehicle to maximize your state's auto exemption? Both of those can help if you have an old vehicle with many miles, or if after doing the means test, you have too much money left over after paying all of your bills.

But if this is business debt, then you're probably talking about ch.11 bk. I know more about ch. 7 than ch. 11. But if you need a credit card to survive bk, and theres no charges on it included in the bk, then I guess its a decent strategy. Just read the small print with the card's contract. They may review you and see you filed bk, and could jack your interest rates up.

[businessisbad]

Some questions....Get a vehicle as in have a secured asset by making payments? Or pay for a vehicle to maximize your state's auto exemption? Both of those can help if you have an old vehicle with many miles, or if after doing the means test, you have too much money left over after paying all of your bills.

But if this is business debt, then you're probably talking about ch.11 bk. I know more about ch. 7 than ch. 11. But if you need a credit card to survive bk, and theres no charges on it included in the bk, then I guess its a decent strategy. Just read the small print with the card's contract. They may review you and see you filed bk, and could jack your interest rates up.

This is certainly a risk. However, he advised he has had very good results with this strategy with credit unions. They tend to check up less. If two get closed and one stays open then it was successful I suppose.

[HHM]

Its not really odd advice...I suppose if your credit is decent right now, then applying for the cards makes sense. There is no down side to you, but at the same time, the strategy has no guarantee.

Whether getting a vehicle prior to filing depends on your circumstances. Can you afford it, do you really need it. The questions in this regard are more practical than anything else.

[jessegirl]

The advice that my attorney gave me is "credit card companies are evil" stay away from them. All they do is get you in trouble. Cause after you are discharged and things go back to normal you will start to charge again and that is what got me here was the charges. I love paying cash for everything now. Also, i do not spend no where near what i used to cause when i used credit cards i would buy things i won't not normally if i had to pay cash.

[businessisbad]

The advice that my attorney gave me is "credit card companies are evil" stay away from them. All they do is get you in trouble. Cause after you are discharged and things go back to normal you will start to charge again and that is what got me here was the charges. I love paying cash for everything now. Also, i do not spend no where near what i used to cause when i used credit cards i would buy things i won't not normally if i had to pay cash.

Credit cards are not what has me in trouble. The business has dragged me down. I have a lease I need to get out of and a business loan over 100k I used to buy product for a deal that went bad when my customer went BANKRUPT! Iam stuck with the product and cannot sell it and the loan is due I have very little credit card debt. In this day and age a credit card is necessary to travel, rent a car etc. My new job I will be required to travel and a credit card is needed for sure.

[CompTweaker]

Credit cards are not what has me in trouble. The business has dragged me down. I have a lease I need to get out of and a business loan over 100k I used to buy product for a deal that went bad when my customer went BANKRUPT! Iam stuck with the product and cannot sell it and the loan is due I have very little credit card debt. In this day and age a credit card is necessary to travel, rent a car etc. My new job I will be required to travel and a credit card is needed for sure.

Dont forget about your bank's debit/visa card.....it draws straight from your checking account and has many of the same advantages.

[businessisbad]

Dont forget about your bank's debit/visa card.....it draws straight from your checking account and has many of the same advantages.

Many rental car companies will not take a debit card. Already had this happen on a recent trip to Austin, Texas.