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  1. #1
    Join Date
    Sep 2008
    Posts
    7

    Question Limits on Credit Card Use

    My question involves bankruptcy in the state of: NEW YORK I had a meeting with a lawyer to discuss chapter 7 bankruptcy and was advised to max credit cards before filling ,this sounded a little strange is this true or should I seek different counsel.

  2. #2
    Join Date
    Mar 2007
    Posts
    9,096

    Default Re: Limits on credit card use

    This is very poor, but oft given, advice.

    If it appears to the bankruptcy judge that you knowingly ran up the cards just prior to the BK, the judge may not admit that debt to be joined.

    Yes, I know there are incidents of the judge not noticing/caring. There are just as many where the judge does.

    I, personally, would not take the chance.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Limits on Credit Card Use

    Purchases, particularly luxury purchases, totaling more than $500.00 to a single credit card creditor within 90 days of bankruptcy or cash advances on a credit card totaling more than $750.00 to a single credit card creditor within 70 days of bankruptcy are usually presumptively fraudulent. You would have to prove to the court that you actually intended to pay these charges or they will probably be considered fraudulent.

    I would be very careful here & not take the chance as cyjeff also suggested.

  4. #4
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Limits on Credit Card Use

    Max your credit cards? Worst. Advice. EVER.

    Gods yes, get a new attorney.

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