Should I continue to charge on my cards before bankruptcy?
August 5, 2010 Leave a comment
No! Stop charging things on your cards prior to the bankruptcy. Once you decide to speak to a bankruptcy attorney about bankruptcy I would stop making any charges on your cards. You could invite a fraud challenge to your charges if you do charge so just don’t do it.
If you do make charges prior to a bankruptcy the credit card companies could say that you did not intend to pay the money back. You sign a contract with them when you sign up for the card that states that you intend to pay back the money you borrow when you make charges on the card. If you make a large charge prior to the bankruptcy that is close in time to the bankruptcy filing then they can challenge that charge as a fraud. They will claim that when you charged the card you knew that you did not intend to pay them back.
The charges you made longer ago before you considered bankruptcy are okay but stop charging once you consider actually filing. It is true that the smaller the charges the safer they are but be careful and consult an attorney before charging any thing if you are considering bankruptcy.
If you have to charge some necessity like food so you don’t starve then that is probably the safest charge to make as long as it is for a small amount.