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Big No-No: Using Credit Cards After You’ve Decided to File Bankruptcy

If you are considering filing bankruptcy, do not use your credit cards!Written by Craig D. Robins, Esq.

Once you’ve made the decision to file for bankruptcy, any credit card use after that point becomes highly scrutinized and very suspect.  This should be obvious.  After all, if someone decides that they are seeking to eliminate their credit card debt through bankruptcy, then incurring additional credit card debt can be considered fraudulent.

 If a credit card company learns that a debtor used a card without any intention of making full payment, then the credit card company has the right to object to the debtor’s discharge of that particular debt. 

 What’s more, if the case trustee or United States Trustee learns that the debtor intentionally “charged up” his or her cards before filing, then the either trustee can seek to have the debtor’s discharge denied or case dismissed.  There is also the possibility that the debtor can be found to have engaged in bankruptcy fraud — a criminal offense.

 Bankruptcy is a very powerful consumer protection tool that can enable you to eliminate all credit card debts and get a fresh new financial start.  Don’t jeopardize your ability to take advantage of the federal bankruptcy laws by being greedy or foolish.   Don’t create unnecessary red flags that can expose your case to additional review.  So don’t use your credit cards once you’ve decided to file bankruptcy.

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