Isn't there a rule that you shouldn't

[Frodo]

Use your credit card for X months before you file? I thought I read that somewhere, probably here.

[HHM]

Sort of, there is what is known as the presumption period. Any charges for non-necessities that in total exceed $500 within 90 days (3 months) of filing BK are presumed fraudulent and thus are nondischargeable.

But if you make significant charges within 6 months ($2,500 or more) prior to filing BK, that will usually trigger an objection to discharge from the creditors, depending on what the charges were for.

[so_far_in_debt]

I talked about this with my lawyer Thursday. She did not indicate that charging was a problem within the 90 day period, and I informed her that I had only stopped charging about 30 days ago. She did state that any payments that were made to any one CREDITOR that were over $600 in the 90 days preceding the BK would be reviewed by the trustee to ensure that there was no preferential treatment given.

[SinkingFast]

I talked about this with my lawyer Thursday. She did not indicate that charging was a problem within the 90 day period, and I informed her that I had only stopped charging about 30 days ago. She did state that any payments that were made to any one CREDITOR that were over $600 in the 90 days preceding the BK would be reviewed by the trustee to ensure that there was no preferential treatment given.

Just be prepared to repay the money for any charges within the 90 day time frame.

Our attny said the Code says whatever $$$'s for luxury goods and services. Line of Credit by Line of Credit. But if you have CC charges in excess of the limit for necessities within the presumption period, Creditors will sometimes ask for that money back.

Within the presumption period, it's easy money. Basically Creditors threaten to Object and it's not worth it to the Debtor/Filer to pay the attny's fee to fight it.

In most cases, the fee you pay the attny only covers filing your BK and appearing at the 341 with you. So even tho it's not luxury goods and services, Creditors know they've got you.

[bige1030]

Charging is a problem when it's for luxury goods or services aggregating $500 or more to one single creditor - then, the presumption of nondischargeability arises as to that particular debt. Also, cash advances of $750 or more within the 70 days before filing are presumed nondischargeable ().

Payments to any single creditor of $600 or more within 90 days of filing (1 year if the creditor is an insider) in a consumer case are considered preferential under some circumstances and may be recovered by the trustee from the creditors, so that a more equitable distribution can be made (). It doesn't mean you're in trouble. It just means that those payments can be recovered by the trustee.

[ezgo68]

Payments to any single creditor of $600 or more within 90 days of filing (1 year if the creditor is an insider) in a consumer case are considered preferential under some circumstances and may be recovered by the trustee from the creditors, so that a more equitable distribution can be made (). It doesn't mean you're in trouble. It just means that those payments can be recovered by the trustee.

What is an insider creditor?

[SinkingFast]

What is an insider creditor?

Family, friends, close business associates. People you'd have a more intimate relationship with. Rather than people you would have a casual or strictly business relationship with.

[bige1030]

[mbmurray]

So I could use my credit card to pay my utilities and buy food in the months up to filing and have it able to be discharged? I just can't pay for luxury item within that time frame, correct?