Do I have to stop using credit cards prior to filing bankruptcy?

Yes, you should stop using credit cards bankruptcy. Bankruptcy requires that a card not be used within 90 days for frivolous purchases. Bankruptcy code allows the trustee to review any recent credit card statements as part of the overall investigation into the petitioner's finances. A charge that has been made within the time frame before filing may be considered frivolous and will not be discharged. In turn, the debtor is now on the hook for paying off the bill even though they filed for bankruptcy.

An unofficial exception to the rule is utility bills. In the situation where a debtor paid for a utility bill on the card, the trustee may overlook it and allow it to be discharged. Necessities in general may also be overlooked. Don't plan on going on a shopping spree before filing. It doesn't make the petitioner look good to the trustee and can cause a deeper investigation to happen. Further research by the trustee can potentially lengthen the time until discharge, dragging out the overall bankruptcy.

Get Legal Help

Credit card debt can be eliminated via a bankruptcy. However, the process itself is not easy. It's also a very stressful time for the filer. Don't file without legal assistance. A lawyer can answer questions, put the client's mind at ease, and walk them through to a successful discharge.