Credit Card Usage Prior to Bankruptcy

There are various requirements that must be completed before you file your bankruptcy case. The first of these is to stop using your credit cards and to stop incurring any additional debt. In reality, the decision to stop using credit cards and incur debt should come once the decision to file bankruptcy is made. The concern with the bankruptcy court is fraudulent activity. If you use your credit cards right before you file, those charges can be held to be nondischargeable. This is especially true because credit card companies are familiar with the bankruptcy process and will likely object to the particular usage in question. If their objection is successful, then the amount that you charged on that card immediately before the bankruptcy will be held to be nondischargeable, and you will owe that amount. Since the goal of your Chapter 7 bankruptcy is to discharge all of your unsecured debt, it is best to just avoid any charges on your credit cards or the incurring of new debt prior to filing.