My wife and I will filing for chapter 7 in a few months. Due to our financial issues, we have run up the credit cards making more difficult every month to make the minimal payment our our CCs. If we stop paying the credit cards and we file in 4 months....Will this hurt us in filing for chapter 7? Will it look bad if we ran our credit cards and then all of sudden just stop paying?
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If you aren't going to pay you need to stop using the cards now or there will be a presumption of abuse. Do a search on the boards and find out how long you need to wait before filing after the last use of your card, including a balance transfer. I've read different amounts of time. Some say 6 months, some say 90 days, some even say a year depending on how much your charges were for and what they were for. You may want to go ahead and start interviewing attorneys as well and finding out more about your state laws.C in GA - Filed Chapter 7 Aug '09
341 Hearing Oct 8, '09 - DONE -
It isn't a presumption of abuse issue, it is an issue of whether or not the creditor will file an AP to try and determine the debt non dischargable if you went on a shopping spree on the eve of BK.
Generally creditors can say that if you charged something that wasn't a necessity within 90 days of filing (while you were insolvent) then they have a right to object to that portion of the debt.
If you stop using your cards and paying on them, and file in 4 mths, the less likely it is that the creditor will object to the dischargablity of that debt.Comment
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