how long can you keep using credit cards before you file

[TBLTZ]

can you use them up the day before you file for small purchases like food gas walmart or should you stop using them a month before you file? I havent stopped paying the bill.......yet.

[kvangild]

I believe 6 months before you file.

[keepmine]

An exception to discharge is using credit cards for luxury purchases of $550 within 90 days of filing.

http://doney.net/bkcode/11usc0523.htm

C)

(i) for purposes of subparagraph (A)--

(I) consumer debts owed to a single creditor and aggregating more than $500 [$550] for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and

(II) cash advances aggregating more than $750 [$825] that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable; and

[Dollar amounts in subsections 523(a)(2)(C)(i) and (ii) are adjusted on April 1 every 3 years by section 104. Adjusted amounts effective 4-1-07 are in brackets.]

(ii) for purposes of this subparagraph--

(I) the terms "consumer", "credit", and "open end credit plan" have the same meanings as in section 103 of the Truth in Lending Act; and

(II) the term "luxury goods or services" does not include goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor.

I'm of the opinion that, once bk is inevitable stop using your cards and halt all payments to debts you wish to discharge. The reason is, post bk your access to credit will be limited for awhile and you need to see if, you can support yourself on a cash basis. If you can't make ends meet then you have a problem bk can't fix.

[Amy26]

I used my credit cards up to very recent of my filing. Nothing large ... mostly gas, food, clothes. Most of my cards I hadn't used since last October but I had transactions within the last 90 days on 2 cards. I did make a couple larger purchases in April and May that I will probably end up reaffirming or redeeming on. My lawyer told me the transactions were usually fine as long it was "living" type of things and not going out buying boats, fur coats, and expensive things. He said using my cards for living expenses is what got me in the mess in the first place. I was also current on my cards up till May.

[LuciluS]

can you use them up the day before you file for small purchases like food gas walmart or should you stop using them a month before you file? I havent stopped paying the bill.......yet.

IF you know you will be filing bankruptcy in the near future, Our Attorney told us to Stop Paying our CCs immediately if: No Large Balance Transfers within the past 90 days....If no large purchases were made....IF purchases were under $100 & needed to live on (he said must have documentation of proof, ie. bank statement on day CC was used, etc.).

You are just throwing away $$ much needed. Waiting up until the last minute to quit paying is Not going to change your Credit Report once you file BK.

He told us that in late Sept. of last year. We haven't used our CCs since then. The next two months were Tough, especially being Christmas time & having 3 precious grandchildren. Makes you realize how much you relied on CCs & forces you to live on a Budget.

Sooo, haven't paid CCs, on all but 1, since 10/08. Will be filing 9/30/09.

[TBLTZ]

IF you know you will be filing bankruptcy in the near future, Our Attorney told us to Stop Paying our CCs immediately if: No Large Balance Transfers within the past 90 days....If no large purchases were made....IF purchases were under $100 & needed to live on (he said must have documentation of proof, ie. bank statement on day CC was used, etc.).

You are just throwing away $$ much needed. Waiting up until the last minute to quit paying is Not going to change your Credit Report once you file BK.

He told us that in late Sept. of last year. We haven't used our CCs since then. The next two months were Tough, especially being Christmas time & having 3 precious grandchildren. Makes you realize how much you relied on CCs & forces you to live on a Budget.

Sooo, haven't paid CCs, on all but 1, since 10/08. Will be filing 9/30/09.

I made a 6k balance transfer about two months ago. I have to wait that out.

We just went food shopping and spent 100$ and put that on a cc. Do you think I have to wait 90 days to worry about 100$ for food? Im looking to file Sept 1 I think.

[LuciluS]

I made a 6k balance transfer about two months ago. I have to wait that out.

We just went food shopping and spent 100$ and put that on a cc. Do you think I have to wait 90 days to worry about 100$ for food? Im looking to file Sept 1 I think.

I had a $3,500 balance transfer from one CC to another (better interest rate) in Aug. Our Attorney told me to pay 3 months of minimum payments & try to add $20 - $50 to min. payment each month. I added $25. That's when we thought we would be filing in Dec. 08 or Jan. 09.

Stop paying on all the other credit cards now. If you do that, you should have some extra money to pay for Food, etc. Make darn sure, you hold onto that food shopping receipt of $100.

Honestly, it seems as though when it comes to small charges on CCs', it's a "Hit or Strike". You just never know when one CC might appear at your 341 or object within the time limit of 60 days after filing (I think..long day).

I just read where Bankruptcies are expected to Hit an All Time High before the 3rd Quarter of this Year. CCs' are consolidating/closing offices & cutting jobs left & right. In my opinion, Unless It's Big Bucks, they don't have the time nor an Attorney in each State to file objections. I think they were not expecting a Recession & neither was I.

Luci

[mamaof2]

we didn't have much of a choice, so 3 of our 22 cards were used 3 weeks before we filed. But it was for gas, food, etc. BUT------we also didnt plan on filing for BK, so i guess i would say that if you are "planning" on filing soon, stop using the cards, stop paying on the cards and use cash. just IMO

[TBLTZ]

I had a $3,500 balance transfer from one CC to another (better interest rate) in Aug. Our Attorney told me to pay 3 months of minimum payments & try to add $20 - $50 to min. payment each month. I added $25. That's when we thought we would be filing in Dec. 08 or Jan. 09.

Stop paying on all the other credit cards now. If you do that, you should have some extra money to pay for Food, etc. Make darn sure, you hold onto that food shopping receipt of $100.

Honestly, it seems as though when it comes to small charges on CCs', it's a "Hit or Strike". You just never know when one CC might appear at your 341 or object within the time limit of 60 days after filing (I think..long day).

I just read where Bankruptcies are expected to Hit an All Time High before the 3rd Quarter of this Year. CCs' are consolidating/closing offices & cutting jobs left & right. In my opinion, Unless It's Big Bucks, they don't have the time nor an Attorney in each State to file objections. I think they were not expecting a Recession & neither was I.

Luci

ugh.... I guess now I will wait the 90 days to play it safe. Plus I will get a used car and not reaffirm the current one.

[LuciluS]

ugh.... I guess now I will wait the 90 days to play it safe. Plus I will get a used car and not reaffirm the current one.

That's a decision only you can make. As stated in my previous posts, we quit paying in late Sept. on CCs. I think there were 2 we hadn't paid in Sept. Rest were not paid in Oct.

Yes, most CC's are in the hands of Collection Agencies or passed on to Junk Debt Buyers, but I don't care. Credit will be trashed due to BK anyway. All of our CCs were notified of upcoming BK & Attorney told me not to answer the phone.

Sooo, with that said, it might be best to wait. Waiting, not charging or paying on CCs', was a real big eye opener for us. Forced us to live without credit cards & we've had some major Medical Crisis this year.

However, the Best Advice is given by your BK Attorney as he/should practically know your whole lifes' history Just teasing on the history part; however, he should know at least any questionable transactions you might have incurred within the past year or so.

Luci

O just saw where you want to get a used car & not reaffirm the one you have now. Payments' too high? Upside down on car quite a bit? Just wondering. Won't be able to reply as it is nite nite time for me

[HHM]

You can continue to use credit cards up to the day you file IF you are using them for necessities, i.e. groceries, gas in your car. HOWEVER, if you must do that to make ends meet, it begs the question as to whether you should file BK "at this point in time". However, cash advances, balance transfers, and large purchases ($900+ combined over the prior 90 days) you must stop doing and wait at least 90 days before filing.

[falken]

You can continue to use credit cards up to the day you file IF you are using them for necessities, i.e. groceries, gas in your car.

Would it not be fraud if you know that you plan on filing on the date of the purchase?

[needachance]

If you are not paying your payments, you shouldn't need the credit card to buy anything. You should have the funds out of your pay.

[CH33 Paralegal]

The worst that's going to happen is that anything that was done recently and not for basic existence can be objected to by the creditor and if the court sides with them, you just have to offer up a payment to satisfy what was done recently and in excess.

The court is not interested in you running up the tab right before you file, but the court also understands that a Ch7 is because of low income and that sometimes, life is life....life is not vactations, flatscreens, or video game systems though. Life is not Longhorn Steakhouse either.

[mmenz22779]

we didn't have much of a choice, so 3 of our 22 cards were used 3 weeks before we filed. But it was for gas, food, etc. BUT------we also didnt plan on filing for BK, so i guess i would say that if you are "planning" on filing soon, stop using the cards, stop paying on the cards and use cash. just IMO

OMG 22 cards wow