When you go through a bankruptcy with credit card holders at what point do have to stop using the cards?

Question

I am in a situation where I am having to use my credit cards more and more for day to day necessities but know I am fighting a losing battle and am going to end up in Bankruptcy. (regrettably if I might ad) But I am also not wanting any problems with accusations of fraud or anything. If i need to buy food/gas etc.. If anyone has been through this please let me know. I am in Michigan if that makes any difference.

Thanks,

Answer 1

The odds are that you will be stopped from using your cards before you reach the point of filing.  However, credit card companies can file a suit blocking the bankruptcy if they believe that you continued to use the card after knowing you were going to file for bankruptcy (called non-intent to pay)

Below is a link to a summary of what judges look for when deciding whether or not to grant the motion by the credit card company.

http://www.moranlaw.net/badgesoffraud.ht...

If, for example, you use the card one month before filing for bankruptcy, there is a good chance the company will win and you won't be able to file.

Answer 2

Sorry to hear about it.

I have answered thus question many times in detail, but I have some 1800 answers to sort through.

I'll give you the bottom line.

1. Go see several BK attorney. The ones that have a free initial consultation.

http://www.bankruptcyaction.com/question...

There are a lot of things you can do, I don't make those options avail by post.

good luck

Answer 3

It is fraud if you are using your credit cards when you know you cant repay the money

Answer 4

I filed Ch 7 back in 2005 and my lawyer advised me then to stop using any credit cards immediately. If you open accounts or continue to use the cards within 3 months of filing, the creditors can challenge it and the bankruptcy could be denied.  From what I hear, the bankrupcy laws are even stricter now, so I'd recommend talking to a lawyer about this first.

Also, bankruptcy is a federal action, so the state makes no difference.