The 90 day cc rule.

[tsfranci]

Recently I became aware of the 90 day rule where you should not charge anything to your cc for at least 90 days before your 341 meeting. The meeting is on Oct 7 and the last time we charged anything to a cc was late july. One charge was for a tank of gas and the other was for clothing. Both charges were for sixty dollars and under. How will this effect my case? I contacted my attorney to make him aware of this blunder but he hasn't returned my call yet and I am really starting to panic.

[Judeebubzee]

You'll be fine. They have issue with debtors running up their credit cards for vacations, luxury items or VERY BIG purchases before filing. A tank of gas and some clothing isn't going to be a concern. Don't worry

[LadyInTheRed]

Judeebubzee is right. You'll be fine.

The rule is that if within 90 days of filing BK you charge 600 or more to any one creditor for the purchase of luxury goods or services, those charges will be presumed to be fraudulent IF the creditor objects to their dischargeability by filing an adversary proceeding. If the charges don't meet that criteria, a creditor would have to prove that the charges were fraudulent to keep them from being discharged. If a creditor does file an adversary proceeding and the court rules a charge was fraudulent, then that specific debt will not be discharged. It does not affect the rest of the BK. So, the absolute worst that can happen is that you will have to pay back the amounts you charged. But, that is extremely unlikely to happen. It's not worth $120 for a creditor to file an AP and try to prove those charges are fraudulent.

To help avoid any possible problems, many attorneys advise their clients to completely stop using all credit cards 90 days before filing. It's good advice. Why do anything that may make a pissed off creditor look more closely at your case? Besides, it's best to learn to do without the credit cards anyway.

[IamOld]

Wonderful explanation!!!!!

Judeebubzee is right. You'll be fine.

The rule is that if within 90 days of filing BK you charge 600 or more to any one creditor for the purchase of luxury goods or services, those charges will be presumed to be fraudulent IF the creditor objects to their dischargeability by filing an adversary proceeding. If the charges don't meet that criteria, a creditor would have to prove that the charges were fraudulent to keep them from being discharged. If a creditor does file an adversary proceeding and the court rules a charge was fraudulent, then that specific debt will not be discharged. It does not affect the rest of the BK. So, the absolute worst that can happen is that you will have to pay back the amounts you charged. But, that is extremely unlikely to happen. It's not worth $120 for a creditor to file an AP and try to prove those charges are fraudulent.

To help avoid any possible problems, many attorneys advise their clients to completely stop using all credit cards 90 days before filing. It's good advice. Why do anything that may make a pissed off creditor look more closely at your case? Besides, it's best to learn to do without the credit cards anyway.

[lillymarlene]

I accidentally did the same thing, used a credit card for groceries and gas about a month before filing. I'm slightly hard of hearing, my attorney insisted he told me about that rule, but I probably missed it. However, nothing happened...most likely because as everyone has pointed out here, the charges were well below $600 and for non-luxury items.

[donnao]

You'll be fine, I charged $200.00 for a tattoo 60 days before,(depressed with my situation) wasn't even mentioned. I believe they are looking for bigger purchases as said above.

[AngelinaCat]

Donnao: You aren't going to like my response, but $200.00 for a 'shendi-flekin' TATTOO????? What were you thinking???? You are BROKE!! That is why you are here.

Okay, the RANT is over; carry on....

[donnao]

Jeez sorry, it was a family symbol that happened to mean a lot to me, you have no idea what I have been through!