When you go through a bankruptcy with credit card holders at what point do have to stop using the cards?
April 27, 2009 by Credit Repair Tips and Advice
Filed under Debt Consolidation, Bad Credit Loans, Bankruptcy
Can you answer Musicman’s question about Credit Repair?:
I am in a situation where I am having to use my credit cards more and more for day to day necessities but know I am fighting a losing battle and am going to end up in Bankruptcy. (regrettably if I might ad) But I am also not wanting any problems with accusations of fraud or anything. If i need to buy food/gas etc.. If anyone has been through this please let me know. I am in Michigan if that makes any difference.
I am in a situation where I am having to use my credit cards more and more for day to day necessities but know I am fighting a losing battle and am going to end up in Bankruptcy. (regrettably if I might ad) But I am also not wanting any problems with accusations of fraud or anything. If i need to buy food/gas etc.. If anyone has been through this please let me know. I am in Michigan if that makes any difference.
Thanks,
Free Credit Score Check
Credit Repair Feedback: It is fraud if you are using your credit cards when you know you cant repay the money
Credit Repair Feedback: once the cards companies here you filed bankruptcy the cards are cancelled.
Credit Repair Feedback: I filed Ch 7 back in 2005 and my lawyer advised me then to stop using any credit cards immediately. If you open accounts or continue to use the cards within 3 months of filing, the creditors can challenge it and the bankruptcy could be denied. From what I hear, the bankrupcy laws are even stricter now, so I’d recommend talking to a lawyer about this first.
Also, bankruptcy is a federal action, so the state makes no difference.
Credit Repair Feedback: The odds are that you will be stopped from using your cards before you reach the point of filing. However, credit card companies can file a suit blocking the bankruptcy if they believe that you continued to use the card after knowing you were going to file for bankruptcy (called non-intent to pay)
Below is a link to a summary of what judges look for when deciding whether or not to grant the motion by the credit card company.
If, for example, you use the card one month before filing for bankruptcy, there is a good chance the company will win and you won’t be able to file.
Credit Repair Feedback: Sorry to hear about it.
I have answered thus question many times in detail, but I have some 1800 answers to sort through.
I’ll give you the bottom line.
1. Go see several BK attorney. The ones that have a free initial consultation.
There are a lot of things you can do, I don’t make those options avail by post.
good luck