Do not use Credit Card for 90 days?

[Mary123]

When they say "Do not use Credit Cards for 90 days" before filing BK,
does that mean only the CC's that I'm including in my BK?

I still have one CC that has a zero balance that I use to
buy gas and other things.
Should I stop using that card (the one that won't be included in the BK) too?

[OhioFiler]

When they say "Do not use Credit Cards for 90 days" before filing BK,
does that mean only the CC's that I'm including in my BK?

I still have one CC that has a zero balance that I use to
buy gas and other things.
Should I stop using that card (the one that won't be included in the BK) too?

Well if you are using it it has a balance and will be included in your petition. Even if you pay it off before you file the lender will most likely close the account.

[AngelinaCatHub]

When they say "Do not use Credit Cards for 90 days" before filing BK,
does that mean only the CC's that I'm including in my BK?

I still have one CC that has a zero balance that I use to
buy gas and other things.
Should I stop using that card (the one that won't be included in the BK) too?

Even if not included, it will or may be closed. It will show on your Credit History and you have to give them a copy of that.

Now is the time to practice your "new start" and stop all credit cards. My opinion. 'Hub

[bk2009]

It's my understanding that you have to include everything in the bk and that most cards will close anyways.

[falken]

I had 5 cards not included in my chapter 13, one survived but the credit line was reduced from $10,000 to $100.

[Mary123]

Not sure if the question was understood.
I meant:

To file for BK, do you have to stop using ANY credit cards within 90 days?

Can I still use the good CC during the 90 day period I have to wait?

[falken]

Not sure if the question was understood.
I meant:

To file for BK, do you have to stop using ANY credit cards within 90 days?

Can I still use the good CC during the 90 day period I have to wait?

Its a good idea... When you file you are suppose to list all debt, if the card does not have a $0 balance they may object to discharge.

Even if you use the card and pay it off you need to list any payments to a creditor of $600 or more in the previous 90 days. The trustee may seek return of these payments as preferential payments from the creditor, which would void the payment you made. The creditor could then object to dischargability.

Example: You charge $2000 and pay it off when the bill comes, you file a month later and the trustee seeks return of that $2k to pay off unsecured creditors. The creditor could then file an objection to dischargability of that $2k (making you pay it all over agian). I'm not sure if this has ever happened before or not, but it seems like it could to me.

[StartingOver08]

Not sure if the question was understood.
I meant:

To file for BK, do you have to stop using ANY credit cards within 90 days?

Can I still use the good CC during the 90 day period I have to wait?

Wait. It is better for you to not have charges on your cc's within the 90 period. If your charge is a small charge necessary for living it probably will not be an issue at all, but why muddy the waters? If you have a total amount charged to a single creditor within the 90 days of $500 or more, it could be considered non-dischargeable debt. The creditor could object.

See this link for a better explanation of the BK changes: http://abiworld.net/bankbill/changes.html

[Mary123]

thanks . .
I'm trying to avoid using the CC at all.

Is it better to use a Debit Card?
Are they going to check all your purchases?

[falken]

Yes, I suggest using your debit card for everything. You do need to submit your bank statements, they are mainly looking to make sure you aren't draining your account or spending it on luxury items before you file.

[overthedebt]

If you are to not use a CC at all for 90 days, even on 'necessity items' like food or gas, do you just stop paying all the minimums to create the means to pay for these items in cash? By maintaining my 'good credit', I've drained myself to ziltch paying all the minimums on time. If I no longer paid the minimums then of course I'd have the means to pay for gas, groceries, etc in cash. Confused about all of this.

[OhioFiler]

If you are to not use a CC at all for 90 days, even on 'necessity items' like food or gas, do you just stop paying all the minimums to create the means to pay for these items in cash? By maintaining my 'good credit', I've drained myself to ziltch paying all the minimums on time. If I no longer paid the minimums then of course I'd have the means to pay for gas, groceries, etc in cash. Confused about all of this.

You are not confused. You are exactly correct. Stop using the cards AND stop paying them. Your desire to maintain good credit should be put on hold until after you're discharged from BK.

[LSUTiger32]

I have stopped using mine within the last week or so, but am I required to wait 90 days before I can file. I spent $80 on one for medicine at Walgreen's and I think I used one for $40 for gas for the car. Does this mean I can't file now until October?

[LuciluS]

I have stopped using mine within the last week or so, but am I required to wait 90 days before I can file. I spent $80 on one for medicine at Walgreen's and I think I used one for $40 for gas for the car. Does this mean I can't file now until October?

It depends on the District/State and only your Attorney would be able to give you a Definite Yes or No answer.

I do know there's several members who have filed and used their CCs in the 90 day period. I'm going out on a limb and say you are Probably okay as Medicine and Gas are necessities. To be on the safe side, if you have the monies available pay back the $80 and $40. If you can only pay one, I would pay the gas one as I honestly don't see how anyone could argue if you charged Medicines.

Keep your Receipts on both.

Luci