use of credit & payment

[SobStory]

We stopped payments (and use) on CC last Dec. We have not yet filed. We have a small business and we were waiting for payment on a job. We used our Home Depot commercial charge, on which we had a zero balance, to buy materials. The only other alternative was no work.

My plan is to just pay it off. I assume that charging without intending to pay it off is fraud. However, I have read in some other threads about preferential treatment. I am now scared and confused. How much trouble am I in here? I probably will file in a month.

There was no other way to get the materials. No material, no work, well you get the picture. I have been paid for the job. Can I just pay this off?
I know this looks stupid. I'm not really stupid, just jammed.

[SobStory]

Can anyone chime in on this, please?

[AfraidOfBK]

i wonder about this too...i believe if you pay it off it will be considered preferential since you are not paying the other ccs....what about just paying ht eminimum and then waiting another three months from purchase date? THen they cant say anything (if u can afford to wait)

ALso, is this something youll have to keep up? Because then I think the bk will definitely be questioned....

[StartingOver08]

If you pay it, the Trustee could very well go after the creditor to reclaim the payment.

You would be safer to have 90 days from the payment before you file. You are in a difficult spot because you used the charge (within 90 days??) and the creditor may object to you spending the $2000 and not making any payments and call that fraud.

Personally I would rather pay it and have the trustee go back and get the funds directly from the creditor.

[SobStory]

Hopefully, we won't have to do this again. Our customer asked us to wait two weeks to pay us. I just didn't have the cash to buy materials any other way. Maybe another alternative is to affirm the debt?
I really want to pay this off. Btw, this is in the business name. If I don't pay suppliers, we will be completely out of business with no work. We have a local supplier that we pay monthly i.e. they do not let us carry a balance past 30 days. We usually use them & pay whatever is due each month. They did not carry what we needed & we went to Home Depot.
I bought the material with the intention of paying them but now need to understand the implications of doing this.

[StartingOver08]

You can probably reaffirm the debt to Home Depot - but I think it is unusual to reaffirm a cc and they will shut down your access to credit anyway (most likely). Ask your attorney.

[SobStory]

Ty, Starting Over. I am inclined to pay it. Then maybe we file before 90 days, maybe not. But it won't be my problem, I think, if I just pay it.