BankruptcyWhat Should I Do With My Credit Cards Before Filing For Chapter 7 Bankruptcy?

March 1, 20220

Most of the time, the credit card debt you’ve incurred will be discharged in a chapter 7 bankruptcy.

However, if you incur debt on your credit card with malicious intent, it probably won’t be discharged by filing for chapter 7 bankruptcy. Putting charges on your credit card without intending to pay them back—particularly when you know you’re filing for bankruptcy—is nearly always considered fraud.

Read on to learn more about how you should handle your credit cards before filing for chapter 7 bankruptcy.

How to Handle Your Credit Cards Before a Bankruptcy

It is important to be modest with your credit cards before filing for chapter 7 bankruptcy. According to the bankruptcy rules, you shouldn’t use your credit cards for luxury goods and services or cash advances, particularly within a few months of filing your bankruptcy case.

If you break the bankruptcy rules, you’ll have to prove that you did so without intending to defraud your creditors. You can do this by providing proof of your intentions to pay back the debt or that you weren’t planning on filing for bankruptcy.

You May Still Purchase Necessary Goods and Services

The courts will allow you to discharge debts you incur within the months before your filing so long as they are a result of purchasing goods and services necessary for maintaining your employment or household.

Some examples of necessary goods that are likely to be discharged include:

  • Heating bills during the winter,
  • Fuel to drive to work, or
  • Unbranded sneakers for your child’s physical education class.

We’re Here to Help You

If you have incurred debts you cannot pay back and would like to learn more about filing for bankruptcy, reach out to our team right away to learn more about the process and what we can do to help you.

Contact the experienced attorneys at Caddell Reynolds Law Firm by calling 800-671-4100 or filling out an online contact form today.

Call 800-671-4100 24 hours a day, 7 days a week