Need Advice of when to do it.

[cooz46]

I have pension income of 16,000 per year. My wife and I have 2 - 6 year old cars with clear title no leans. We have 60,000 of unsecured CC debt now. Wife is homemaker and I am unemployed with no unemployment. CC are not in the red at this time and are current, but starting this month they will be because of limited income. Pension will take care of food and housing (rent home). Credit report is not bad now but will be very quickly. Question is this should we wait to file Chapter 7, or wait until the cards are in the red 3-4 months or should we file now. Also if we continue to charge on the accounts will we be responsible for paying it back even after we file chapter 7.

[HHM]

I see no reason why you should wait as you don't gain anything by waiting. As for using the cards, the cut off is typically 3 months. You shouldn't use your cards in any significant way for 3 months before filing bk.

Once you file the BK, you have to stop using the cards until discharge, but if you use them after filing, you will have to pay it back the amount you charged.

[HRx]

The general rule is that you will need to cease using credit to purchase goods at least 3 to 6 months prior to filing for chp 7. If you attempt to purchase luxury items: tv, computers, jewelery etc......prior to filing. You could be required to repay these debts or surrender them. However, if you're forced to use credit to purchase items such as groceries prior to filing, because you dont have any income........the debt accured will generally be discharged under a chp 7. The best bet is to discontinue using all forms of credit prior to filing.

Good Luck!