Credit Card use after 341, but before discharge?

[jyrim]

We are almost through the 60 days post 341 (2 weeks away). We filed because our business failed 2 years ago, we had to move out of state to take a job and had to sell our house. The short sale fell through and we were saddled with over $150,000 debt because the bank foreclosed. We did have credit card debt when we filed because the last few months the business was alive, we stopped paying ourselves and tried to get through what we thought was a temporary slowdown by using credit cards for our expenses. This was almost two years ago and we haven't used credit cards since. Most of our cards were canceled before the bankruptcy, but a few were not.

This week for the first time, I have used a store credit card that was surprisingly still open! I've made a couple purchases with it because using it gave me free shipping. I am still a cash only gal, these were very small purchases totaling less than $25.

But suddenly I am in panic mode that this is somehow going to screw up our bankruptcy since we are not actually discharged yet. I know you shouldn't rack up your credit right before filing, but have not read what is allowed after the 341, but not before discharge. This is not a card that had a balance that we declared when we filed. Can someone put my mind at ease?

[AngelinaCatHub]

This has been discussed many times. No, you are not allowed to rack up any kind of debt after 341 or at anytime until discharge, without permission. The little bit you did probably will not hurt you, but be technically right anyway. Pay it out soon, and try not to incur anymore.

Personally speaking, using credit is a bad habit that perhaps you should think about. What got you here? I too am on a cash basis and refuse even a checkbook. I use a debit card on the credit side (for legal protection) and when it does not have money in the account, it will advance me to $500.00 credit with a $30 charge as if NSF. Now that persuades me not to go that far.

It is time to get used to owing no man or entity. It is a freedom you will love. Perhaps at least we can keep that freedom for awhile. 'Hub

[jyrim]

I plan to pay it off before the next statement and not have a balance at all - it was just to save the $8 shipping charge for using my debit card. I have no intention of ever going back into debt - like I stated, I have not used a credit card for almost 2 years. And honestly we wouldn't have filed bk based on the cc debt we had, we were planning to settle with them. But the house debt is what sunk us. I don't think the orders have shipped yet, should I go as far as to try to cancel them? Or would I be okay to make a payment as soon as I have a balance? We are so close to being done, I don't want to jeopardize anything now.

[BROKEDED]

If it were me...well I wouldn't have used the credit card...but I would cancel the order. I think it was a mistake but and I think paying that creditor could be a mistake as well.

[frogger]

Our trustee specifically told people that they were not to use credit cards. Period. No exceptions.

[jyrim]

I called customer service and was able to get 1 order canceled. But the other will be shipping soon and I can't cancel it. I was thinking I should pay the charge as soon as it ships so there would be no balance. Are you saying I shouldn't even do that? That that would be considered preferential treatment? The other option would be to return the item to the store as soon as I receive it. With the free shipping, the charge should be fully refunded. But shipping may take up to 2 weeks for me to receive it and the charge would be on my account for that amount of time. Would that be the better option?

I seriously was not trying to take on new debt or commit fraud. It was a credit card that was already on my online account and in my mind I was using it as a debit card since I would be paying it off quickly. I would have never used it if I thought it would have been a problem. I just need my best course of action to try to remedy the situation so as not to jeopardize my case. Thanks!

[BROKEDED]

I know it sounds like a hassle but if you can return it and have the charge wiped off I think you can truly tell the Trustee that you messed up and tried to correct it without breaking any rules. If the company wants to charge you a restocking, s&h, return fee, you may want to just eat any charges and pay with your debit. Btw, I don't know what you could legally get by with but you certainly wouldn't want to risk your BK over this. Every Trustee is different so what one might not blink an eye at in one state or district, another could cause you lots of problems.

[tcreegan]

Hi jyrim,

Pull out of panic mode....

According to your first post, we are talking in the $25 range, right? That is way too small for anyone to notice, no preferential payment, no jeopardize your case, no nothing.

You used the card to save $8 on a $25 purchase, you saved ~30%, that is a good deal. Pay it off before it comes due, no one will even blink.

Your discharge will be your Christmas present...

Tom in Colo

[jyrim]

Thank you! I think I will just pay the charges as soon as they hit the card. I have no problem taking the merchandise back, but they will get here so slowly, it makes me nervous to have a balance sit there for so long!