Do people live it up before filing bankruptcy

[JackBondLove]

Here's the deal. If you are going Chapter 7, then basically you will be penniless after the filing date (except for certain exempt assets.) So the only question is will you be better off hitting this point of financial singularity now (or at least in 3 months) or at some time in the future. Do you plausibly believe that your income could get better in the future? (If you are currently unemployed, you can always believe that you will get a comparable job again.) If so, then you could continue to spend (although with no really big items.) If you are working now, you would probably do better to just do the BK ASAP (with the proper amount of no use in your accounts.) Per the letter of the law, however, by simply asking us on this forum about BK, you have displayed a reasonable likelihood that you will be filing BK, so your spending habits should be muted, to say the least, if using your credit cards. Now, if you have your own cash on the side, you're free to do with that what you want (presuming that you didn't get this cash from cash advances.) Of course in any case, anything you buy could be subject to confiscation by the BK trustee.

Now with all that said, you can still buy needed stuff. Do you have some medical procedure to do? Car work, etc.? But whatever you do, you need to show a minimum of 3 months of no debt use (probably good to go to 6 or even 12 months!) I definitely wouldn't go so far as to empty out your retirement accounts like AngelinaCat (in fact I would say that since retirement accounts are exempt, that you'd be a fool to do so.)

Do you have student loan debts? I would absolutely pay those off, since they are not dischargeable (just make sure to wait 90 days after paying those off to file.)

[JackBondLove]

Is this true? I mean I owe 58k on 7 cards... I feel kinda stupid paying the minimum balance since bankruptcy is probably looming. but if I don't pay the minimum amount due, what do I do with the money? Hide it under my bed!???

That money will be confiscated by the trustee in a Chapter 7. If that wasn't money that you got from a cash advance, it's yours to do as you please. I'm not sure of your cash flow, but if it's negative now, I would use that to subsist on until a year has passed, when you will be able to do the Chapter 7 with no issues.

You cannot hide it under a bed, nor give it to a friend. In fact, if I were you, I would account for virtually every $ I spend that wouldn't be going through my digestive tract, saving receipts, etc.

[oicu812]

so in the 90day period of not using cc's do you still make the min payments?

[AngelinaCat]

so in the 90day period of not using cc's do you still make the min payments?

No, save that money for your attorney and/or your Emergency Fund.

[bcohen]

As of today I owe 58k on 7 cards...

Thing is I actually have 9 cards and available credit.

58k is an overwhelming amount and chapter 7 maybe the best option.

Maybe, maybe not. That would really depend on your current (and expected future) income, other debts, whether you have any current medical problems, etc. If you are currently working, but barely scraping by, then maybe bankruptcy is the best solution. If you are currently unemployed, or have current or chronic medical problems, perhaps it might be best to hold off on filing.

If I'm declaring bankruptcy, wouldn't it be to my advantage to use the other 2 cards and get more into debt?

It depends what you are planning to “get more into debt” for. If you plan on purchasing necessary items such as food, medicine, fuel for your car, paying for healthcare, etc then no one will question it. But if you plan on purchasing non-essential items such as jewelry, electronics, fancy clothes, vacations, etc, I can guarantee that will be flagged as fraud, and the debt will be declared non-dischargeable.

So by all means stock your fridge, freezer, and pantry before you file, and refill your medication (if applicable) but don’t do anything stupid!

[merime]

I find this thread interesting. So many peple scolled that little old lady who withdrew her savings , so that she had money to live on. She did that years before she stopped paying her CC. Here everyone is debating if one should live it up before filing. I think most of us knew that our finances were not healthy. If one chooses to take out his money or go on a "live like you are dying" spree knowing they could hold off years before filing or a settlement , than such is their right. Thats why the laws are there. There is no real right beyond staying inside of the law. For goodness sake my sons friend who is 18 was working at a deli. The deli closed and he decided to collect unemployment -BECAUSE HE LEGALLY COULD. This kid didn't need unemployment. His parents are both lawyers , the kid drives a BMW, is healthy and could find another job. I on the other hand have my arm twisted because I am bound to the "must live apart for 1 yr" law, in order to have the privilage of divorse which would allow my bankrupcy to happen. The law is the law. Sometimes it works for you , other times against.

[justbroke]

I am an equal opportunity scolder of anyone whom may abuse any system. I feel sorry for her, but she's more a Robin Hood than a person that I would model my life after. The core of the matter is that she is at such an age, that most creditors wouldn't bother her (that much). I feel sorry for the Estate afterwards, but I can understand her plight.

This doesn't work for a person who is not an advanced senior. That was my main complaint when it comes to this particular case.

[scorpion35]

As of today I owe 58k on 7 cards...

Thing is I actually have 9 cards and available credit.

58k is an overwhelming amount and chapter 7 maybe the best option.

If I'm declaring bankruptcy, wouldn't it be to my advantage to use the other 2 cards and get more into debt?

what a stupid question
i u go ahead and commit fraud i hope u get caught

[debee]

That post is three years old.

[bcohen]

That post is three years old.

I am not sure of your point. Although the OP has most likely already filed and been discharged, the topic of this thread is of interest to many other people who are considering filing for bankruptcy. This forum exists to provide advice and information for people who are considering bankruptcy and/or have already filed. There is nothing wrong with reviving an old thread to discuss the same exact issue!

[debee]

I am not sure of your point.

My point is that giving BK1234 advice, asking him questions or telling him that he's stupid is silly because the post is three years old and he won't be reading or answering. He hasn't logged in for two years.

[IHateToBeEmo]

My point is that giving BK1234 advice, asking him questions or telling him that he's stupid is silly because the post is three years old and he won't be reading or answering. He hasn't logged in for two years.

plus, the forum rules ask us not to "bump" old threads.

[AngelinaCat]

Okay, this thread is now closed.