Am currently well over income for means test for family of four. Am currently cutting all ot at work and should be close to qualifying and able to file on Oct. 31. Just missed my first mortgage payment(not reaffirming house) and cc payment-feels weird as have never missed a payment. Can I continue using cc up until close to the time I file for groceries/gas/entertainment/small purchases/etc. Am going to continue to make payments on two cards with small balances but fairly liberal limits up until close to the time I file so those accts will not be cut off.Money is tight after cutting ot at work. Any input appreciated.
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No, you know you are filing, so you can't (shouldn't) continue to use the card. Since you are not making the mortgage payment why is it that you need to use a credit card for basic living expenses? Now is the time for you to learn to live without credit.Originally posted by robger99 View PostFiled Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions. -
Agree with the previous post.
STop making payments to all accounts that will be discharged and use that money to support yourself.Comment
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if money is tight why are u cutting OT?Originally posted by robger99 View Post
i think that using your credit cards after u decide to file is WRONGFiled chapter 7 on 9/17
341 on 10/20
Chapter 7 Trustee's Report of No Distribution on 10/21
Discharged and Case Closed on 12/21/2010
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I think what eveyone is trying to say is that by realizing that you need to file for BK you've hit a wall, and by hitting the wall you need to stop! Stop paying mortgage, stop paying credit cards, and above all, stop using credit!Comment
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well saidOriginally posted by NoMoeMoney View PostFiled chapter 7 on 9/17 341 on 10/20
Chapter 7 Trustee's Report of No Distribution on 10/21
Discharged and Case Closed on 12/21/2010Comment
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At my 341 meeting the Trustee asked everyone if they had used any credit cards in the past 6 months (correct anwer: no) I had actually never heard that 6 month figure, but I guess you should not use them for 6 months before 341, which is usually a month or 2 after filing. It wasn't an issue for me since I was totally maxed out on my cc's so couldn't use them if I wanted...Comment
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I don't have an attorney representing me, but I did meet with one. He asked me if I've been maxing out my CC's?.....He said some people will go on a spending spree when they know they will be filing. So, I gathered that it isn't whether or not you have used them, but more so that you haven't been buying a bunch of stuff and then trying to exempt those things.....and 6months just happens to cover an appropriate time period.....
I don't know bout some of you, but I didn't start lookin into filing more than a few weeks agoComment
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I believe that the general rule is that you need to stop
using credit cards completely within 90 days of filing bk.Comment
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check P.293 of the nolo book.......i cant read more than a snippet, but it should be on this page, if someone doesnt ref it before me, when I get my book I'll see what it says....
what i could read of of it.......it mentions 'especially if you charged more than $550 of luxury goods in the 90days prior to filing'Comment
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I tried to stop using mine when I thought I was going to file almost 2 months ago. I talked to a lawyer but have yet to pay him as I'm still not totally sure. I did have to use one to buy a washing machine about a month ago. but that is the one card I'm still paying the min. on. Then I had to renew my nursing license on a card I stopped paying on 2 months ago. I did'nt want to do it but had to have the license and that was the only way to pay. I'm thinking I should at least pay the $60 charge, but not the $183 they want for the past couple months and late fees. What do you guys think?Comment
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Realize that if you have to rely on credit cards to survive you are broke. Reality is slapping you in the face and you don't feel it. What happens is the limit will get hit on the cards and by that time most people have already started robbing Peter to pay Paul with their cards. Unless someone goes to your door with a $100,000 check, there is no way you are going to be able to pay those bills and you know it but will keep charging if possible in a state of denial. Stop using the cards, see a BK attorney and learn to budget and live on a cash only basis for a while. If one doesn't do that, in a few years they will be back on this or other forums wondering what happened._________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket"Comment
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90 days prior to filing chapter 7 is the legal definition of insolvency. If you know you are insolvent and use the cards when you are insolvent (ie within 90 days of filing) and do not pay them, then the credit card company has the right to contest the discharge of the card by filing an AP. Now granted, if you are only charging small amounts of food and gas, etc, you probably will not have an AP filed against you, but still using the card when you are legally insolvent can be grounds for contesting on the basis of fraud.
Also, once your missed mortgage payment hits your credit report (ie in less than a month) your credit card limits will be cut to the bone anyway and/or your cards will be closed.
I think its wishful thinking on the part of the original poster to think that the credit cards are going to stay open with large open credit limits, when his mortgage is about to report late on his credit reports.You can't take a picture of this. It's already gone. ~~Nate, Six Feet UnderComment
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So when you say if you use a certain card and do not pay it, they have the right to contest it? If they do and win the contest are you liable for the whole balance on the card or just the recent charge? The reason I ask is my balance is around $1900 on the card that I made the $65 charge. I hope I did'nt mess things up. Will I be okay by sending in the $65? The washer I charged last month was about $325 and my balance is around $525 on that card. I'm not too worried about that one as it may be 90 days by the time they file and could pay that if I had to, but no way I can pay the first card I mentioned.Comment
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You are fine. Small amounts will not be contested.Originally posted by Medport View Post
Usually only items over $550 or so trigger an AP, since it is expensive on the part of the creditor to file an AP. But in terms of bankruptcy, 90 days before you file is considered the time you knew you were legally insolvent, so it is best to try to not use the cards 90 days before you file.
There were several posts about "luxury items" and filing in this thread, and its true that purchasing "luxury" over $550 items can trigger an AP but it is very hard to determine what is a "luxury" item and what isn't, so as a rule, I advise people to just not use the cards 90 days before filing.
In the OP's case, I think there is some denial going on as what the consequences of missing a mortgage payment will be. I expect the OP's cards to all be closed and/or credit limits slashed as soon as that missed payment hits his credit reports. Large, open credit lines, are one of the first things to be taken away when people prepare to file for bankruptcy.You can't take a picture of this. It's already gone. ~~Nate, Six Feet UnderComment
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