We had not used out cc for a while except for a charge here and there but then we charged about $2000 worth of stuff like clothes and shoes for 4 kids and dh and me, household items from target and walmart and the occasional dinner out at applebees. It was our intent to pay back the new charges with our income tax refund but realized we would need that money to pay other bills and not pay off the recent charges on the cc. This is on an Amex. Then I got notified that our credit limit has been reduced to about $2000 more than our balance. I don't want to charge any more and be close to the limit on the card because if there is any way of salvaging this and not doing a bk I want to keep my real good fico scores. So we will not be using the card any longer but we won't be paying all the recent charges off either. Right now we are current on everything, but we will run out of income tax money and money we have saved up in our checking account within about 3 months. Then we would be down to a bare bones salary and it would require us to move forward with a bk. We hope that another job will come through for dh, and that would save us from doing bk but I am not counting on it and moving forward with planning for bk. Question- would my recent charges and then the fact that I stopped charging anything for 90 days before bk send a red flag that I made charges in bad faith? I have the nolo book and on pg 275 under bad faith use it states that one of the factors in determining fraud is bad faith use of cc when you know you are insolvent and one of the ways that banks claim insolvency is evidenced is by a rapid increase in spending, followed by 60-90 days without activity.
your thoughts
thanks
your thoughts
thanks
341 - 9/14/09
Closed 12/8/09
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