Small credit card charges prior to filing for Chapter 7.

[wellnowwhat]

Hello, everyone.

I've decided to attempt filing for Chapter 7 Bankruptcy and I've met with and paid to retain an attorney, so essentially the process is underway. I've started filling out the attorney's paperwork, and I'm hoping to have the attorney and filing fees paid in full in 60 days or less. My wife and I are also expecting a baby at the beginning of July, and we've been advised by our attorney to wait until after the baby is born for me to file (partially due to the possibility of medical debt, and because having the child as a dependent will push us well under the median income).

One of my primary concerns about filing is the credit card charges I've made in the last few months. I opened a couple of new accounts and made some fairly small charges (Less than $300 on each, one only has $135 on it). Some of the charges, however, were made merely days before, and in one case on the day of, my speaking to an attorney and his advising me to file. The charges on the day of filing were for gasoline to get to his office and for me to get some cavities filled.

I've heard the "don't buy $650 worth of luxury items on one card within 90 days" advice, but I'm wondering how these small charges will look since I made them without really knowing what was going to happen at the attorney's office. Is there a big chance that they'll be contested since they were so soon within my filing?

My attorney has told me to not worry too much about it, but for some reason I'm still skeptical (aka a worry-wort )

[keepmine]

In the grand scheme of things, nobody is worried about a few hundred dollars. For sure, nobody will consider a trip to the dentist as a luxury. You're worrying over nothing.
Big thing is, once you file bk, you're going to need to get used to living without credit for awhile. You really need to figure out how you're going to support yourself post bk.
Have you stopped paying all debt you want to discharge?

[wellnowwhat]

In the grand scheme of things, nobody is worried about a few hundred dollars. For sure, nobody will consider a trip to the dentist as a luxury. You're worrying over nothing.
Big thing is, once you file bk, you're going to need to get used to living without credit for awhile. You really need to figure out how you're going to support yourself post bk.

That's good to know. Thanks for the confidence/words of comfort. My wife and I have already discussed going without credit as much as possible once the bankruptcy is over. I have a decent job, but unfortunately her hours have been cut back and the expenses for the baby are piling up more than we expected, hence the chapter 7 filing. Once it goes through, however, we should be in a better position to keep ourselves out of debt and handle our expenses.

Have you stopped paying all debt you want to discharge?

Yes, I have. My attorney told me to stop throwing away money at my debts, so I've stopped paying them, starting this month.

[keepmine]

I think you're getting top notch advice from your lawyer. Some good preplanning going on here. Delay until the baby is born and have an additional dependent will get you under the median for the means test and, any unanticapted expenses from the delivery can be discharged. You'll do just fine.

[LadyInTheRed]

My wife and I have already discussed going without credit as much as possible once the bankruptcy is over.

You will most likely have to go cold turkey on credit use for at least a few months. Even the cards that don't have balances will mostly likely get cancelled after you file. Some have reported a credit card without a balance surviving BK, but that is the exception. Not to say you will never get credit again. Just don't count on it for a while. In fact, it's better that you never count on it. Many like to use credit cards for convenience and awards they offer. But, once you have a clean slate, its best not to charge more than you can pay off when the bill comes.

And I agree with keepmine. Sounds like you found a good attorney! Try to trust his advice on not worry too much. Of course, if something doesn't sound right or you just can't help but worry, we're always here.

[Drazil65]

Hi and welcome, I agree with what LITR said above, go cold turkey on the cc and learn to live on cash, for all expenses. Save up for what you want/need and if you do not have the cash then you do not buy. It takes a while to get this kind of mentality and the transition period is not easy BUT it will be one of the best things you could possibly do for your fresh start. Cannot explain how freeing it is not to owe anything on cc, the banks have no power when you owe them nothing!!! Good Luck!!!!

[wellnowwhat]

You will most likely have to go cold turkey on credit use for at least a few months.

I'd like to go cold turkey forever, personally. But my wife and I are still fairly young and will eventually need to buy a house, so obviously building some sort of credit is important. Fortunately I'm filing alone and her credit is good, so only one of us will really "suffer" for too long.

Regarding my original post, does it make a difference if on the $135 charges for dental work I've never made a payment on the account? It was an old account that I had previously paid off completely. They had closed the original account and re-opened it under a new account number due to my losing my card. Then this dental work came up and I needed to get it done. I had anticipated making payments, but now that my attorney has told me otherwise there won't be a single payment on the new charges. Would it be advisable to make at least one minimum payment (probably around $25)?

[keepmine]

Nobody is gonna care about $125. Save your money.