I think ideally you want to make 2-3 payments on cards you recently used. However, I will say that there was 2 cards that I used and the following month (used on Nov 2nd and couldn't pay Dec) couldn't make the payment. It wasn't for anything luxury--and for less than $300 on one card and the other card for $100. It was at gas stations, or grocery stores, and paying our water bill.
I just couldn't make the payment the following month. We'll have around 6 months from last use to filing. I'm not incredibly worried about it.
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Advice to stop paying on CCs...Pros/Cons?
We have our first consult set up for next week and will most likely be filing a Ch7, but I want to get some input before that meeting. It seems the general rule of thumb is to stop making payments on CCs (and of course stop using them, which we have) when you know you are headed toward a BK. But DH and I are wondering how bad it looks and potential scrutiny of your case if there is no time in between not using them and not paying on them. Especially when 2 - 3K/month was being put on them to pay electric, gas, cable, basically all living expenses. Granted, sometimes there is no other option. But, hypothetically speaking (since we haven't talked to said relatives yet)....
IF relatives are willing to buy all groceries for us and fill up our gas tanks for a few months so that we can have some $$ to pay minimums (as opposed to them giving us money, which we don't want to have to explain), would this be advisable? So that we could have a few months of paying after we quit using them?
And if we do this, is there any chance the trustee will look at our bank statements and ask, "How were you paying for groceries and gas?"
AND...if he/she asks that, will our relatives get drug into the whole BK process if we say that they bought us groceries and gas?
We are thinking we probably won't file until June or July, if we can hold out that long, since the last CC use was the second week of January. If we are able to pay minimums for Feb, Mar, April, then we would only have a couple of months of non-payment before filing.
Advice?
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