Kentucky Bankruptcy Law

Counsel with Care

Things to be aware of if facing bankruptcy 3

Next in my series of posts on “don’ts” to avoid when looking at the possibility of bankruptcy is one that either with get a “of course” from you or a “seriously?”. ¬†Do not use your credit cards.

Again, this needs some fleshing out. You may not be able to both file the bankruptcy AND avoid use of credit cards. However, you need to be very judicious in use of credit. You do not want to make any large or luxury type purchases on credit in the months or weeks just before filing a bankruptcy. A luxury purchase does not have to be luxurious – just unnecessary.

Use of credit cards on the eve of a bankruptcy may trigger the credit lender to review your account and look for large or luxury type purchases. It could result in a motion to dismiss or at least a motion to deem those purchases as non-discharged. So, it just is not worth it.

Now, if you must use your credit cards coming up on a bankruptcy, be sure you use it only for necessities. Groceries are the perfect example. First, they are necessities and second they are consumed. This does not mean stock piling as if World War 3 was about to occur, but just meeting your families needs. Purchasing gas for your car is another example.

Furthermore, you may, IF NECESSARY, look at purchasing groceries and gas on credit instead of using your credit card to directly pay for your bankruptcy.

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September 23, 2013 - Posted by | Additional Debt, attorney fees, Bankruptcy, Cash Advances, Chapter 13, Chapter 7, Discharge, Planning, Pre-filing planning | , , , , , , , , , , ,

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