Kentucky Bankruptcy Law

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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?”. ┬áDo 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.

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

Online cash advances

Since I started off on a soapbox today, I might as well end on one. Here is my best advice regarding onling cash advances: DO NOT USE THEM! Frankly, it is very dangerous and incredibly expensive to ever use a cash advance agency. Once you begin using them, then massive fees associated with them just makes you come up short more and more financially resulting in using them more frequently. Now, I know, there are some folks who just have their backs up against a wall and it is the only reasonable alternative they see. In that case, go to a local one with a mailing address. When you use the online ones, they have hidden their mailing address purposely to avoid being served with legal notices such as bankruptcy filing notices. You could end up with that debt not discharged because they did not get notice (applies to Chapter 13 and asset Chapter 7 cases). Additionally, there are some special rules about cash advances that I will address at another time. Bottom line – avoid if at all possible!

November 18, 2010 Posted by | Bankruptcy, Cash Advances, Chapter 13, Chapter 7 | , , , , | Leave a comment