question about credit card purchases

[cdgh]

hello everyone. i filed chapt 7 bankruptcy 3 weeks ago. prior to filing i used a debt settlement service for about 6 months. this was a huge mistake!!! they really did not help at all. i stopped using several of my accounts, but i was told to keep some to help rebuild my credit. what is the rule for using credit cards prior to filing bankruptcy. i have charged less than 600 dollars on each of the cards in th past 90 days. is this ok? also i took some a cash advances on one of the cards for about 860 dollars over the past 90 days. these were not luxury purchases. i am confused as to whether the rule is 60 days or 90 days. i have read that you cannot charge or take cash adavnces for over 1150 dollars in the past 60 days prior to filing bankruptcy. if that is the case then i am fine. i live in new york state if that makes a difference. also since i
stopped paying on some accounts (because i was in a debt settlement program)but continued to make payments on others,will this count as preferential payments.(i have not payed more than 600 dollars to any of the active accounts in the past 90 days.) thank you all so much. this is a very stressful time in my life. i have a lawyer, but he is hard to reach and he just tells me to relax.

[HRx]

the general rule is to not include any credit accounts that have been used within the last six months in a BK 7 filing. Doing so can cause the accounts to be non-exempt.

yes, it is good to withhold one or two credit accounts that are in good standing and that do not have a large balance. Doing so will help in re-establishing your credit history. But be forewarned, if careless use of credit cards is what got you into debt in the first place, think twice about doing this. you may be better off paying yourself for the next 1 to 2 years, to build up some liquid capital.

Good Luck!

[Johnhost]

I have yet to file any Chapter 7 bankruptcy. But I have a pretty long list of credit issues. Most of the bulk of that comes from an uninsured accident. Because I really don't make very much money I havn't payed on any of this. I have been living hand to mouth for a long time.

My question is on the opening of a standard checking account after you discharge. I had a normal overdrafted account with washington mutual and was on auto pay with several utilities. Plus I took out a pay-day loan. All of that came back at the same time and fried my account. So since then I havn't had the account. They of course have reported this to the check systems. If I decide to file am I going to be able to open a standard bank account (one where I can deposit checks) right after? Or at all? And I mean with any bank.

Also within the last 2 months I was on a horrible low limit high fee credit card that I stop making payments on. Should I wait to file for 4 months?

[Johnhost]

questions about checking accounts and credit cards?

I deleted this question because it was posted in two different threads. The question is the post above this one. And a response is below.

-Todd

[HRx]

It really depends on the bank. Opening another checking account, after you have filed for BK7 is the better alternative. But if you cannot wait until you file. See if the bank will allow you to open a Secured Checking Account. Determine if you can secure it with $500 to $1000. To obtain all the Checking Account priveldges. e.g. Visa/Mastercard Check Card, et cetera.

Yes, you'd be better off waiting out the four to six months prior to filing, since you recently defaulted on the credit card.

Good Luck!

[davidb81]

Ive heard that cash advances before bk are what really tick the card companies off also ive heard of people making small charges right up to a few weeks before filing and not hearing a word about it. It just depends I guess

[bnkrpt]

i charged about $500 to a credit card for car repair expenses about 2 months (for the car i already surrendered prior to the 341 hearing, which was on 5/20)...is it possible for them to file a motion that this debt is not dischargeable, even though my case has been deemed a "no asset" case? seems to me this would be a "necessary expense" & I didn't have the income to pay for it, but I'm not sure...as always thanks for any replies.

*sorry if this should have been a new thread, don't know how strict you guys are. *

[InDebtInMD]

I havd a few minor charges on one or two of the credit cards, and a few hundred $$ worth of things on the store cards. If I end up having to pay that, so be it.

We have not taken any large cash advances in over a year.