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  1. #1
    Join Date
    Sep 2010
    Posts
    3

    Default Use of Available Credit Prior to Chapter 7

    My question involves bankruptcy in the state of: CA

    I am considering filing Chapter 7 due to job losses and divorce(s). My attorney believes I will pass the means test. All of my credit card obligations are Paid as Agreed. There are no defaults or negatives on my credit reports, just excess credit used ratio to credit available.

    1.) Prior to filing Chapter 7, can I use the remaining credit available on my credit card accounts to fulfill needs. What are the laws regarding purchases, cash advance, etc. on credit cards specifically?

    2.) What happens to the active credit cards with a zero balance after the filing? Do I lose the credit?

    3.) Should I open a secured credit card account now, or after filing? I will need a credit card for business travel purposes and for making small purchases online when necessary.

    Thanks!

  2. #2
    Join Date
    Jan 2008
    Posts
    164

    Default Re: Use of Available Credit Prior to Chapter 7

    Quote Quoting Nam
    View Post
    My question involves bankruptcy in the state of: CA

    I am considering filing Chapter 7 due to job losses and divorce(s). My attorney believes I will pass the means test. All of my credit card obligations are Paid as Agreed. There are no defaults or negatives on my credit reports, just excess credit used ratio to credit available.

    1.) Prior to filing Chapter 7, can I use the remaining credit available on my credit card accounts to fulfill needs. What are the laws regarding purchases, cash advance, etc. on credit cards specifically?

    2.) What happens to the active credit cards with a zero balance after the filing? Do I lose the credit?

    3.) Should I open a secured credit card account now, or after filing? I will need a credit card for business travel purposes and for making small purchases online when necessary.

    Thanks!
    1. You can use credit card for medical expences and emergency expences but not cash advances just for the sake of taking money out (that's fraud)
    2. All credit card company will close your account as soon as you file for BK no matter what the balance is.
    3. it does not matter when you open a secured credit card.

    God Bless

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