Handling Credit Cards During Bankruptcy

If you’re about to embark upon the road to bankruptcy, congratulations!  Really, we mean it.  Of course, no one wants to file, but if serious debt relief is what you need, then there truly is nothing better than the bankruptcy process.  As you prepare to file, there’s one major piece of advice we can’t stress enough… don’t touch that credit card!

Why It’s Serious

It will be hard.  After all, chances are extremely high that a credit card has been your lifeline at one point or another.  We don’t hear of many bankruptcy cases that don’t involve this little piece of plastic in one way or another.  However, you don’t want to use it once you start thinking about filing.  Here’s why:

Any charges you incur on a credit card during the 90 days prior to filing for bankruptcy are not discharged by the courts!  If you absolutely must use a credit card to eat or put gas in the car, then you may not have any other alternatives.  Just be aware that you will have to pay that bill at some point.

It’s especially frustrating for us to see frivolous credit card charges by those filing for bankruptcy because the charges won’t be ignored, and they could even be considered fraudulent!  So, be careful!  The best move you can make at this point is to destroy your credit cards.  It removes the temptation, and ensures you’ll be safe!

Also, remember that there is to be no spending in these 90 days prior to filing!