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Using multiple credit cards before filing Chapter 7

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I thought this was interesting. On my 1st meeting with a potential lawyer, he said that you can actually use your credit cards up to around 500 within the 90 days before filing for your Chapter 7. Of course, it has to be for "living" expenses, not luxury type expenses (expensive items or eating out at expensive restaurants). I know many that actual stop using the CCs altogether so there are no issues when it comes time to filing. I thought the limit was $500 "total" across all credit cards but apparently it's per account (lawyer's claim). This somewhat surprised me.

Does anyone else have any info on this? I'm really debating on actually waiting a full 90 days without any credit card charges so there's no issue before the actual filing. What do you guys think?

I don't know that the attorney should be telling you to do that - sounds unethical to me! I mean, you're filing Chapter 7 BK to eliminate debts - and he's telling you to rack more debt up prior to filing.

My attorney told me that ANY cc debt accrued within 90 days of the filing would be non-dischargeable. I wouldn't think this would be different in other states, unless your attorney knows some loophole in the law that mine didn't. But to be honest, I wouldn't take a chance.

Sub: #1 posted on Fri, 04/24/2009 - 05:33

(Posts: 4581 | Credits: 654.65)

I think this has something to do with "necessities"... vs luxury items. Seems to me I have heard this too.

Sub: #2 posted on Fri, 04/24/2009 - 05:58

Moderators Cum Industry Expert
(Posts: 17209 | Credits: 4746.13)

I'm the thread starter... but no, I did not mean I was going to rack up more debt by starting to charge more on the credit cards. I was simply stating that, for example, I had to pay for food and gas over the last few months. I did not buy anything which was considered "luxury" in any way. Damn, I don't have a job. I'm just trying to survive.

However, just recently, I decided to "finally" file Chapter 7. I was trying everything to prevent it.. but since I'm "still" jobless, I must do so.

So... I stopped using my CCs altogether. However, the last time I used them for food/gas or whatever, was about 30 days ago... so worst case is I have to wait another 60 days before filing again (to let the previous charges "fall off" of the recent 90 days). However, I still feel this huge burden/weight on my shoulders and am a little desperate to file.

On another note, my attorney says that the creditors almost never show up for the 341 meeting unless it's worth their while.

Sub: #3 posted on Fri, 04/24/2009 - 08:48


That sounds kind of unethical to me. It's like "Hey, spend a bunch of money and then file for bankruptcy so you don't have to pay it back!" I don't even know why he suggested this to you.

Sub: #4 posted on Fri, 04/24/2009 - 18:45

regbyandjulie regbyandjulie

(Posts: 144 | Credits: 17.62)

That is actually very much true. I've had people take out loans and file BK before their first payment was due. I've discussed the issue with my attorney about fighting it in court and he pretty much said we'd have to prove the loan was used for luxury items.

However I have fought bankruptcies on other grounds and won. For example, one such situation where a customer took a loan and filed BK the next day, we compared his credit application to the expenses he listed in his bankruptcy petition. He told us he paid $200/month rent, he told the BK court he paid $1650/month rent. Obviously he lied to one of us, and lying to the court is punishable by prison. When we proved he lied to us, we were excluded from the BK and had to be paid back, plus we were awarded court costs and attorney fees.

Sub: #5 posted on Sat, 04/25/2009 - 05:08

DebtCruncher DebtCruncher
(Posts: 2296 | Credits: 269.79)

What about in my checking account I have overdraft protection. These are credit lines the bank has given me. On one of these accounts in Jan. of this year I had credit line advances. I am self employed and it was really slow. So these advances were for food, gas and supplies for work when we did work and for lp to heat our house. There might be 1K in these types of advances. What about those?

Sub: #6 posted on Sun, 04/26/2009 - 18:06


When you file chapter 7, is it possible to continue to use one credit card if you continue to make payments on it? If the card is not in default, is it necessary to list the issuing bank as a creditor?

Sub: #7 posted on Thu, 09/10/2009 - 03:04


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