Is it ok to use CC if we are filing for CH7?

[tools2teach]

We are planning to file for Chapter 7 in about 9-10 months from now. We need to pay for property tax and a broken TV and don't have the cash to pay for it. We want to use our credit card to pay for this. Will it hurt us when we file for chapter 7???

[fltoo]

Tough call. Short answer is no, it is not okay.

Are you keeping the house? If not, don't pay the taxes.

Is there anything in your financial picture right now that would indicate you are filing for BK later on down the road that the creditor could pick up on?

Don't forget, it is only the creditor that can object to this as fraud if spotted. Time is your best friend.

[StartingOver08]

Don't used the cc's. Fltoo is right - if you are surrendering the house, don't pay the taxes. As to the TV, don't buy one until you have the cash - or put a post on freecycle.com and ask for one for free. I have three extra because I have no TV service as I cut that out of my budget months ago. So if you are in my area, you can have one of my TV's for free!

[AngelinaCat]

Some years ago, we bought a good, serviceable TV for $35.00 at Goodwill. Look around at the thrift and second-hand stores for the TV, or as ST08 suggests, freecycle.com.

[HHM]

It doesn't hurt your BK 7 directly, the only risk is that those charges, expecially the one for property tax will be ruled non-dischargeable and you will haev to pay it.

Given the timing of your filing, and assuming you are keeping the house, go ahead and pay the property tax by credit card if that is the only way. Property tax is non-dishargeable anyway, so might as well charge it and see if the CC balacne will get discharged.

As for the TV, I agree with the others, time to start "living" the lesson. If you can't pay cash for the item, you go without until you come up with a plan to save and pay for the item.

[tools2teach]

Thank you for responding. The plan is too keep current on our house payments to appear we are keeping the house when we file for BK. We would wait 2 months after the filing and surrender the house from there. This was the strategy given by my attoryney for filing chapter 7. I guess I got to do what i have to do. If that means charging the property tax on the CC, then that what i'll do. I wouldn't mind paying back, it would be nice to have it discharged.

[rockyroad]

HHM...my property taxes are several thousand. Won't this raise red flags when the charges show on the statements since they will be well over $600?
I am holding off as long as I can to file by the way. I will wait until AMEX gets a judgement and today was the first day I've received a call from a CA.
I really need to charge the taxes though to stay afloat, however I will make some payments on them.
If they get discharged wonderful, but if not, I understand and WILL pay them back!

[HHM]

HHM...my property taxes are several thousand. Won't this raise red flags when the charges show on the statements since they will be well over $600?
I am holding off as long as I can to file by the way. I will wait until AMEX gets a judgement and today was the first day I've received a call from a CA.
I really need to charge the taxes though to stay afloat, however I will make some payments on them.
If they get discharged wonderful, but if not, I understand and WILL pay them back!

Yes...but keep in mind, the WORST case scenario is the debt is considered non-dischargeable, there is no other affect on your BK.

To tools...if you are ultimately not gonig to keep the house, no point in paying the property tax.

[tools2teach]

We are about 9 months a way from filing. Using our credit to property tax shouldn't effect us or am i wrong here?