Credit Card usage pre-filing

[seanp951]

I am 2-3 months from filing BK.

I have been to see the lawyer... I've stopped paying all my credit cards, and my second mortgage.

I am saving up money to try and pay the lawyers fees and set aside a small amount of cash.

I will do a Ch 13. I make too much for a 7.. explored this to death with several lawyers.. a 13 is my only choice.

Here is my question - I have prettymuched maxed allm y credit cards. I have one card with a zero balance, and about 2000 of available credit.

if I use that credit card.. for essential stuff, like gas or groceries... and I can wait at least 90 days before I file... from the last time I use the card.. will I get in trouble?

I'm not going to buy a $2000 fur coat for my wife or anything obviously fraudulent.. but I could use that credit card to not be totally broke the next few months between now and when I file.

I know that I"m not suppose to use a credit card if I think I can't pay it back. don't tell me what I alredy know..

what i'm wondering is.. suppose I do use it - how long do I have to wait before I file? and will waiting 90 or more days insulate me from being dinged.. or will they look behind the time - and scrutinize what I buy, how much?

if I spent the whole 2000 on living expenses in one month - food, gas, etc... and then wait 90 days... I'd be able to pocket $2000 from my paycheck and withdraw it as cash and keep it..

am i able to do this? or more importantly.. will I get caught?

[keepmine]

The code says you need to wait 90 days if the purchases are on luxury goods and servics. Food,etc. isn't a luxury.



(i) for purposes of subparagraph (A)--

(I) consumer debts owed to a single creditor and aggregating more than $500 [$550] for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and

(II) cash advances aggregating more than $750 [$825] that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable;

Thing is, if you are not paying any debt you wish to discharge and still need credit to make ends meet it's hard to see how bk will help you. How will you make your Chapter 13 payments plus, support yourself?
You really need to bare down hard on a budget and see 9f it's possible to live on your salary before you file.

[mountanddo]

I know that I"m not suppose to use a credit card if I think I can't pay it back. don't tell me what I alredy know..

am i able to do this? or more importantly.. will I get caught?

If you have stopped paying your credit cards which were $3,500/month and your second mortgage which I don't know how much that was, why do you need to use the $2,000 you have left on your credit card for essentials? You are 2-3 months away and have stopped paying these so in reality you should have at least $10,000 before you file.

You have known since at least September that you were going to file bankruptcy. Any money spent on your credit cards now especially since you've stopped paying the others would be considered fraud since you have no intentions of paying that back. --but you already know that.

[keepsmiling]

What is your car situation? Have you explored the option to buy one if you will need reliable transport over the next 5 years?

[keepsmiling]

...and I am unclear about why you would need to do what you are asking. Looks like you have plenty of dmi.

[LadyInTheRed]

The quoted portions of the bankruptcy code cover what kind of charges are presumed to be fraudulent. A charge can be fraudulent even if it is not one that is presumed to be fraudulent. As Mountanddo said, using a credit card with no intention of paying it off is fraud.

Seanp951, you seem to want somebody to tell you it is okay. Fraud is not okay and it is against forum rules for anyone here to tell you it's okay.

Once you know you will file BK, it's okay to stop paying your bills to save as much exempt cash as you can before filing. It's not okay to incur debt that you know will be discharged in your BK.

[Flamingo]

I am 2-3 months from filing BK.

I have been to see the lawyer... I've stopped paying all my credit cards, and my second mortgage.

I am saving up money to try and pay the lawyers fees and set aside a small amount of cash.

I will do a Ch 13. I make too much for a 7.. explored this to death with several lawyers.. a 13 is my only choice.

Here is my question - I have prettymuched maxed allm y credit cards. I have one card with a zero balance, and about 2000 of available credit.

if I use that credit card.. for essential stuff, like gas or groceries... and I can wait at least 90 days before I file... from the last time I use the card.. will I get in trouble?

I'm not going to buy a $2000 fur coat for my wife or anything obviously fraudulent.. but I could use that credit card to not be totally broke the next few months between now and when I file.

I know that I"m not suppose to use a credit card if I think I can't pay it back. don't tell me what I alredy know..

what i'm wondering is.. suppose I do use it - how long do I have to wait before I file? and will waiting 90 or more days insulate me from being dinged.. or will they look behind the time - and scrutinize what I buy, how much?

if I spent the whole 2000 on living expenses in one month - food, gas, etc... and then wait 90 days... I'd be able to pocket $2000 from my paycheck and withdraw it as cash and keep it..

am i able to do this? or more importantly.. will I get caught?

If you have been to see a lawyer and are filing in 2 to 3 months, that lawyer would have advised you to stop paying on all credit cards and also to stop using all credit cards and/or cash advances - what we did was go home and cut up the cards - not only what you are suggesting considered fraud inasmuch as you know you are going to file, you are just increasing your debt and digging yourself deeper (you will be paying a percentage of that back during a 13). If you are going to file in 2 to 3 months, that is 2 to 3 months of nonpayment of any credit card bills, etc. and you should have plenty of funds to purchase food and necessities unless there is something else going on you do not wish to disclose. We stopped paying our credit cards two months before filing and I was shocked at the amount of funds we had available - made me vow never again to find ourselves in that position of having to file BK and no credit card is worth that hassle.

[BankruptinNJ]

[QUOTE=seanp951;564340]I am 2-3 months from filing BK.

I have been to see the lawyer... I've stopped paying all my credit cards, and my second mortgage.

I am saving up money to try and pay the lawyers fees and set aside a small amount of cash.

I will do a Ch 13. I make too much for a 7.. explored this to death with several lawyers.. a 13 is my only choice.

Here is my question - I have prettymuched maxed allm y credit cards. I have one card with a zero balance, and about 2000 of available credit.

if I use that credit card.. for essential stuff, like gas or groceries... and I can wait at least 90 days before I file... from the last time I use the card.. will I get in trouble?

I'm not going to buy a $2000 fur coat for my wife or anything obviously fraudulent.. but I could use that credit card to not be totally broke the next few months between now and when I file.

I know that I"m not suppose to use a credit card if I think I can't pay it back. don't tell me what I alredy know..

what i'm wondering is.. suppose I do use it - how long do I have to wait before I file? and will waiting 90 or more days insulate me from being dinged.. or will they look behind the time - and scrutinize what I buy, how much?

if I spent the whole 2000 on living expenses in one month - food, gas, etc... and then wait 90 days... I'd be able to pocket $2000 from my paycheck and withdraw it as cash and keep it..

am i able to do this? or more importantly.. will I get caught?[/QUOTE]


If you make so much money and are not paying your credit cards and mortgage, why do you still need to use a credit card? I'll bet you're still living above your means. What are you using your extra cash for?

Your last line "will I get caught?" says it all. You obviously don't mean to pay it back.

You're heading for trouble. Stop using credit cards. They are not personal piggy banks. And stop asking about rationalizing fraudulent activities.

[bcohen]

If you have stopped paying all your unsecured debts, and you still can't make ends meet on your current income, then it's not clear how using $2000 of credit card money to buy gas and groceries is going to help you.

Even if you could get away with it--and you may very well be able to--that would not solve the basic problem which is that you are living way above your means. Perhaps you need to downsize to a small apartment, surrender your high-payment vehicle(s), and so on. Maxing out your credit card, when you know you're going to file is not the answer.

[AngelinaCatHub]

This OP knows all the above. He says so. He stated he had a zero balance and wants to fill it up then have a transfer of cash "in his pocket". Without seeming rude, I have no tolerance for a bker who is planning on committing fraud. 'Hub