still spending on credit cards

[ocbk]

considering bk.
still spending on credit cards...
what's safe to spend on and what's not?
i am buying groceries and gas mainly, and some clothes and diapers for kids...
want to get a bed for my kid, should I? or should I not?

[lrprn]

The answer depends on when you hope to file and which bankruptcy chapter. Can you share a month/year with us? And which chapter (7 or 13) you hope to file?

[keepmine]

If you still need credit cards to purchase necessities, your immediate issue isn't debt but, lack of income. I'd suggest getting your finances in order and a strict budget in place before you file. After all, you have to support yourself post bk and won't have a cc to fall back on for sometime to come.

[ocbk]

to be honest

i

[AngelinaCatHub]

i am being honest.
the income will cover the living after bk.
i was asking how much you could spend and what kind of stuff you could stock up before filing....
and how long i should wait after spending, before filing.
i know it's abusing of the system.
anybody know?

Not to make a judgmental remark, but, if you can live on what you have after bk, why can't you stop using the cc cards now, and live? Are the CC card billing going to give you that much more spending income?

I would only purchase exempt stuff and the kids bed should be exempt. Don't purchase any toys like flat screen tv's or the like. I would not use the cards a full three months before bk. If you are going 7 remember, your stuff is open to being confiscated by the Trustee and sold, or you just may have to buy it back from the Trustee. NOLO.com has a great Chapter 7 book out and you can get the pdf download version for about 17 bucks. Chapter 13 allows you to keep everything and you have three to five years to pay your creditor back. I believe the credit ding in either case will hit your credit score. Hope I've helped a bit. 'Hub

[MomIcantFindmy]

I agree with Hub! You would be better served to completely stop spending on the credit cards and use the money you are currently making payments with as your money to live on.

As far as too much for chapter 7. It depends on your means test. I suggest taking the free online means test as well as making several appointments with bankruptcy attorneys to find out if you qualify for a 7. If you do not qualify for a 7 you might do a 13 which may give you more money for food etc in the end.

[Cali]

Your story doesn't add up to me. If you can survive on what you make, why use the CC's.

We stopped using our CC's in January. We filed in June. And I survived on what we made. I never thought of using my CC's just because.

[fltoo]

Keeping a house that is over 50% of your income does not make sense, especially when there is no equity. You are throwing good money after bad.

The other posters are correct. Stop using cc's and pay cash. Ditch the house.

You will get excellent advice from people here on how to overcome this crisis, but I doubt if you are going to get an answer on how to abuse the system.

[biotechsolution]

I would first check you mean income limits.
$6K after taxes would be somewhere in the area of $8K+
before taxes, which is what they will base your income on.
Unless you live in a high cost region you most likely are looking
at a chapter 13, so I wouldn't worry about your credit card use
because it will a be 13 payback.

and then all your expenses will be subject to IRS standards,
including tuition.

[stressin]

i was asking how much you could spend and what kind of stuff you could stock up before filing....
and how long i should wait after spending, before filing.
i know it's abusing of the system.
anybody know?

If you think that you'd be abusing the system, chances are that the trustee and crew will likewise think it's abusing the system.
I think that most like to see that you stopped charging things when you realized that you were going to file bankruptcy and knew that you wouldn't be paying it back.
I'm not judging, but if you are hoping for a discharge on a heap of debt--which is what I am hoping for--it's best not to do anything that will jeapardize your chances of a discharge.

[AngelinaCatHub]

i

I believe we have driven Ocbk off. It seems she aborted her last post that is captured in my post as a quote. Ocbk, I hope you come back. You asked the questions, we didn’t give you the answers you want. We all understand you are in trouble, that is why you are here. But the consensus of this forum is to get out of financial trouble, not to just cut and run from creditors. The Creditor loaned us good money at our requests. Not too many of them will club you, pull you off the street and make you buy their stuff on credit. With what you have told us, it looks like you could eek it through a bit and live a little less comfortably. In our household, believe me, we are hurting and we have always lived below our means, now we are being educated as to what poverty really is. It is a blessing to be in this Country where they will grant you a pardon so-to-speak and get a new start, not screw over the system. Things happen in all our lives that we knowing in hind-sight could have done some things about. However, hind-sight is nice, reality is where we are and I will be most appreciative if given my discharge. Note my signature is NO CREDIT CARDS and I mean it. I wish you well. ‘Hub

[Cali]

IMO, the only time someone should be charging anything before filing is if they really need to. But if you stop paying your CC's and have money left from that, you should be able to pay for things in cash. If you still don't have money after stopping your CC payments, you need more than filing BK.

If you think that you'd be abusing the system, chances are that the trustee and crew will likewise think it's abusing the system.
I think that most like to see that you stopped charging things when you realized that you were going to file bankruptcy and knew that you wouldn't be paying it back.
I'm not judging, but if you are hoping for a discharge on a heap of debt--which is what I am hoping for--it's best not to do anything that will jeapardize your chances of a discharge.

[Lajazz947]

Yes, Yes, yes.

I agree with all the posters that say live on cash if possible.

I told my wife that we need to live as if we were in chapter 13 already.

If we had done that earlier we would not be in this mess.

STOP using your CC's or the UST will look at your case as an abuse case.

I am almost weened off of CC use for 7 months now save for about $1500 spent on essential items and maybe a few restaurants.

I don't know if it makes sense but I will speak to my attorney about reaffirming those and make it clear that I was intending to pay back.

[justplaintired]

Ok, are you still paying cc? Is that why you're still charging? If so stop both if you're filing BK.

I think the confusion on this one is, you're charging, but no mention if you're still paying.

Once you have made the BK decision you need to cut up those cc. Stop charging, stop paying, live on a cash only basis. Learn to budget. Far as a bed goes, well frankly, you can't charge a bed, then file BK you have a very good reason for fraud by the trustee. Look at garages sales for that bed, or make due with what you have, save the cash and pay cash, but do not charge if you are intending on filing. No sense in making your case more difficult.

Frankly, some have been a little tough on you and since I don't know your story, I am thinking your fear is not being able to buy things you may need or want without a cc. This fear is common and we can't really blame you for feeling that way. When someone lives on cc so long, they become accustomed, right or wrong, of thinking they can have anything they might need or want. The lesson most of us have learnt during this process is, we don't really need those things, and this poster is still working their way their. We shouldn't scare them off, but tell them how to end the vicious cycle of charging.

Saving money is your best bet. We had our fridge go out about a month ago. I freaked out. We quit charging in Jan and before this we would have ran out and charged a brand new one. Well we figured out a way to buy one without charging and it felt great. Where there is a will there is a way.