CAN I RUN UP MY CREDIT CARDS RIGHT

BEFORE I FILE BANKRUPTCY?

NO.  As a general rule, anything you do shortly before filing bankruptcy is looked at very carefully! This and other important issues are serious concerns and are things that we go over in a Free Debt Consultation. Call us at 210-930-7000 to schedule your consultation.

Running up your credit cards within 90 days of filing bankruptcy will result in you being stuck with all of that debt. Period. Substantial charges, balance transfers or cash advances on your credit cards within 24 months of filing a Chapter 7 bankruptcy may result in a challenge to the dischargeability of that debt. In short, if the creditor can show that you made the charges, balance transfers or cash advances at a time that you could not afford to repay the debt, then the creditor will win and you will be stuck with all of that debt.

A way to avoid this problem is to file a Chapter 13 case instead. By the way, you can file a Chapter 13 for as little as $125 per month, depending on your income and expenses, to take care of all your credit cards, all your medical bills and all your personal loans. I have many clients that have opted for a Chapter 13 bankruptcy due to recent credit card activity. What they were doing was trying to avoid having to file bankruptcy, and they were only able to stay afloat financially by using their credit cards.

Since you can’t borrow your way out of debt, I recommend that you stop using credit cards as a way to make ends meet. Instead, get professional help to resolve your debt problems.

Call us at 210-930-7000 to schedule a free initial consultation to see how bankruptcy would apply to your specific situation.

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