Using Credit Cards

[nervousgal]

I think we may have messed up. Maybe someone can help. We took a business related trip right after we filed for Chap 7 and used a credit card for the rental car. This card was a new card that we didn't take through the BK. How bad is this? I am afraid to tell my atty....he'll think we are idiots. Thanks!

[Flamingo]

I think we may have messed up. Maybe someone can help. We took a business related trip right after we filed for Chap 7 and used a credit card for the rental car. This card was a new card that we didn't take through the BK. How bad is this? I am afraid to tell my atty....he'll think we are idiots. Thanks!

If the card had a zero balance on it at the time of your filing, you did not have to report it for your filing. However, you should have mentioned it to your attorney and listed it on the listing of creditors but showing it as a zero balance. I would tell your attorney about it and you may find that if the creditor gets wind of your BK, they may close that account. I would ensure you pay the balance ASAP and advise your attorney.

[325Falcon]

If you pay them more than $600 you will have to answer for it.

[keepmine]

It's no big deal. You just can't discharge that debt in bk.
They may well close the card once they do an account review. Just pay 'em and you'll fine.

[FreshLikeADaisy]

I remember reading in that Nolo book that you're not supposed to stop carrying out normal business purchases and expenditures just because you have declared bk. Like keepmine says, just pay it, and be ready to explain it if needed. The worst that can happen is that this one debt won't be discharged.

And when you're paying an attorney to be smart FOR you, you can pretty much be just as dumb as you wanna be: it's not wise, I don't recommend it, but it IS his job to help you through this so if he thinks you messed up it's really no great loss...

[Bankruptcy Atty]

Tell your attorney. How much did you spend, and when did you spend it in relation to your case? Additionally, is there any good reason to convert?

[nervousgal]

Thanks for your responses. We got the card purposely to use after we filed and had/have no plans to carry through the BK. We wanted to have on CC (atty also recommended) to use. I have full intention of paying the card, but of course they closed the account. Oh well.