When do you have to stop using your credit cards If you are planning on filing for bankruptcy?

Answer 1

In general people have the idea of having fun in life. That's actually how life should be looked up to. It's absolutely fine and great as long as you make life fun. But things don't quite fall in place when life makes fun of you. Things do turn bad then.

It's also bit relaxing if it challenges you only on an emotional level. But when it reaches financial level, it turns ugly. But then, there's always an option open. When you are completely down with your finance and buried under the jaws of debt, bankruptcy is something that helps you. When you are completely down with money and debts creeping high up, you can always opt for filing for bankruptcy.

A bankruptcy attorney will help you do that. He will definitely tell you that while filing for bankruptcy credit cards should be avoided as much as you can. Taking into consideration what your case or situation is, the attorney will give you a plan for filing bankruptcy. Usually the consumers file under two chapters. The two chapters being chapter 7 and chapter 13. Under chapter 7 the various debts are dismissed where as under chapter 13 repayments is done to the different creditors. Most of the attorneys would talk about credit card bankruptcy. That's because most people file bankruptcy because of extensive credit card use. Most of the people rely completely on credit cards. That's where they miss a few tricks. For an example let us say you have something like $15000 as debt on your credit card and you send a minimum payment of say about 3 %. This would mean you would require too many years to clear off your debts.

So it is advisable to stop using credit cards bankruptcy. Whenever you estimate filing for bankruptcy please stop using you credit cards as soon as possible. There are few more reasons for that also. And purchases worth $500 made from a single creditor on or before 90 days of filing for bankruptcy or if and cash advances are done worth $750 on or before 70 days before filing for bankruptcy may not accepted for clearance of debts. In fact it may come under scrutiny as a case of fraud. So to put in a very simple way, usage of credit cards must be stopped as soon as an anticipation of bankruptcy.