There is no perfect time to file for bankruptcy. Ideally, when you file, your credit cards have not been used for several months, and you have been making the minimum payments on your debts. But, at Mapes Law Offices, we realize the world is not perfect and, if you are facing a bankruptcy filing, you have likely been using your credit cards for basic necessities. We understand you cannot stop using your credit cards for things like food and shelter, but there things you should make sure you are doing in regards to credit card debt.
The Bankruptcy code sets out several different conditions under which credit card debt will not be discharged when you file bankruptcy. Some of those include more than $500 of debt towards luxury goods or services that are incurred within 90 days of your bankruptcy filing or cash advances of more than $750 owed to one creditor within 70 days of your filing. Basically, if you are planning to file for bankruptcy, or even thinking about it, don’t go out and rack up credit card debt on vacations, electronics, jewelry or other items that could be deemed a luxury.
Companies that you owe can challenge your bankruptcy filing for two main reasons, which are:
• Using your credit card in the last three months for anything other than necessities like food, clothing and shelter.
• Using your credit in the recent past where it can reasonably be assumed you would not be able to repay the debt.
With those in mind, if you are thinking about filing bankruptcy contact one of our offices in Grand Rapids, Lansing, or Kalamazoo and speak with one of our highly skilled bankruptcy attorneys now to make sure things are in order. We realize that no one takes the decision to file bankruptcy lightly and we can help you make that difficult choice by showing you the ways it can help you and your finances. If you are even considering a bankruptcy filing, stop using those credit cards for anything other than necessities and give our office a call. We will meet with you for a free initial consultation and answer any of your questions. Together, we can navigate this difficult process and get your finances back where you want them to be.