Use CC to Pay off Cell Phone?

[sunflwrgrl13]

We are in the pre-filing stages. We are hoping to file Ch. 7 on Nov. 1st if we pass the means test. Have a hopefully easy question. We cancelled our Verizon contract to go with Boost. So our final bill from Verizon is in the mid $350s range. Would it be ok to use a credit card to pay off the Verizon bill - we would include this in the Ch. 7. Would it be considered fraud to do this? We haven't used our cards in the past 2mo give or take, so I'd like to understand how this charge this close to filing would be viewed.

TIA

[keepinitreal]

Just include your Verizon debt in your bankruptcy filing since you're using a different carrier now. We included our debt with our cellphone provider in our filing since we had switched to another provider. That way you won't have to worry about the credit card company objecting, and you know you've gone 90 days without using your credit card. Good luck!

[sunflwrgrl13]

Makes sense KIR. Thanks for the advice!

[backtoschool]

It is not ok to use a credit card up to 90 days before filing, since you are insolvent by definition according to bankruptcy rules, and your creditors can have that debt made undischargable if they file an AP. (which they probably would not do for $350 however).

You can include the Verizon debt in your filing as keepinitreal says. That would be the better way to handle the bill.

[wnguyen]

I would rather include Verizon in the bk and not using the credit card to pay for. It's safer both ways.