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    #1

    Using cc for essentials before filing

    I am underemployed in a low-paying job right now and am trying to save up for a lawyer to file ch 7. I have been using one credit card lately. It's mostly for gas, groceries, and a lot of small charges for coffee. There's also a few other non-essential charges, including books I bought from Amazon that I think could help me get a better job.

    The charges are adding up to quite a bit... the balance is over $1000 now. I know about the 70/90 rule for cash advances and cc charges. But it's not clear to me how that rule fits if you charge non-luxuries within the 90-day window before filing and it totals to a large number (is that even relevant?).

    Can someone clarify?

    I am close to saving up enough to get a lawyer, but would also like to save up some cash reserve for survival. If I really had to, I could try to stop all credit card charges. Should I?
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    #2
    Based on what you said, you should be fine. Things like food, fuel, etc, are charges you can make before filing BK.

    You should try to transition into not using CC's to live. After all, what good would filing BK do if you have to continue charging after the BK is over.

    Except for this one credit card you are using, you should stop making payments on any others.

    Comment

      #3
      Originally posted by HHM View Post
      Based on what you said, you should be fine. Things like food, fuel, etc, are charges you can make before filing BK.

      You should try to transition into not using CC's to live. After all, what good would filing BK do if you have to continue charging after the BK is over.

      Except for this one credit card you are using, you should stop making payments on any others.
      I thought you had to include all your cards with balances in your peition??!!
      Last edited by lrprn; 12-02-2007, 12:59 PM.

      Comment

        #4
        Originally posted by magyar123 View Post
        I thought you had to include all your cards with balances in your peition??!!
        You do.
        I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

        06/01/06 - Filed Ch 13
        06/28/06 - 341 Meeting
        07/18/06 - Confirmation Hearing - not confirmed, 3 objections
        10/05/06 - Hearing to resolve 2 trustee objections
        01/24/07 - Judge dismisses mortgage company objection
        09/27/07 - Confirmed at last!
        06/10/11 - Trustee confirms all payments made
        08/10/11 - DISCHARGED !
        10/02/11 - CASE CLOSED
        Countdown: 60 months paid, 0 months to go

        Comment

          #5
          I said stop making payments on the other cards, I did not say to not include the card in the BK. I merely pointed out that so long as this person is using this one card up until they file BK, they should continue to make at least the minimum payment to make the charges less objectionable.

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