Using credit card until filing

[okane]

I have one credit card that I plan to reaffirm so I have been continuing to charge on it. Is this gonna cause any problem even though I plan to pay it back. The current balance on the card is $1500 so its not that much to pay back over time.

[StaciMM]

It might cause an issue-the trustee may see that as preferential treatment, and you're not supposed to show preferential treatment to any unsecured creditor.

What types of things have you charges? Normal living expenses are ok-unneccessary charges & cash advances can cause trouble.

[HHM]

STOP CHARGING, you are filing bankruptcy.

Yes, it is a problem. You cannot use credit while your bankruptcy is pending. Plus, the balance is a little high to reaffirm, the court will probably reject your reaffirmation if the only reason you have is to "keep charging it"

Why do you need to keep charging it?

[alberto2005]

Hello, Okane!

No, you should not be using your credit card, but you can still pay the minimum balance if you are planning on reaffirming this credit card (or keep paying it). One of the lawyers I visited told me that I can continue paying a credit card before, during, and after bankruptcy.

I am in a similar situation like yourself, thinking about reaffirming and/or just keep paying a $1,000 something credit card.

I courteously respect anybody's opinion, but I agree with you that having a debt of $1,500 is not that much, and you can keep paying the minimum for an X amount of time (or perhaps more).

In my personal case, I am thinking that perhaps I can keep paying it and maintain it up-to-date, and I will also include it in my petition. Well, if later the bank cancels it or doesn't accept future payments of mine or doesn't want any reaffirmation agreement, what the heck, I just stop paying them and forget about it (and them).

Being as pragmatic as possible, what do I have to lose if I keep paying them? The $40 something per month as minimum payment? For me, that is not something to be worried about, and again, if they cancel it, "good-bye".

One very important consideration: you don't want to pay them so much so that your payment could be considered "preferential" within the last 90 days before bankruptcy. I think the limit is $500 or $600 (can anybody confirm, please?).

Okane, I hope that you post your opinions.

All the best,

Albert L.

[sunshine08]

We had to list all creditors that we had paid over $600 to in the previous three months before filing. I hope that you are not counting on the company not canceling your account with them. [B]The company will be notified of your bankruptcy and may cancel your card or raise your rates considerably.[/B
Think back to how and why you got in the position of fhave to file. (this only my opinion and everybody knows about opinions) With me what comes up comes out.
What has your attorney advised? He is knowledgeable about your state and may have had experience with this company and what is the "norm" for them under the circumstances.