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Credit card usage right before bankruptcy filing? |
I have decided to file bankruptcy to escape my poor real estate investment decisions. I should add that my income is over $100K, therefore $4K is not as significant to me as it may be to some. If you file a chapter 13, you can probably account for that in your bankruptcy plan, but in a chapter 7 you will definitely be facing an adversary proceeding. I suspect you probably have to file a 13 with your income, but I don't have enough facts to know. If you paid your credit card in full, you would definitely want to file a chapter 13, because that would be a preferential payment subject to the trustee requesting it be returned, the chapter 13 payments can take that amount into account and cause less problems than a chapter 7. what do you mean your account is in good standing..like you went and bought 4000 worth of stuff..which buy the way is friggin ridulous when you were planning on filing bankruptcy in the near future. If you run up your credit card shortly before filing bankruptcy the card issuer will argue that the debt should not be discharged. You indicate you have stopped now that you have realized your financial situation is worse than precarious so you would have a defense to this. Your attorney--and trust me, you will need one--will give you official advice that you can rely on. i believe it was a honest mistake but what i think does not matte -- you are going to need a bk lawye anyway -- get one and ask him these questions!!! |
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