Harris-Courage & Grady, PLLC
STOP Using Your Credit Cards
If you are thinking about filing bankruptcy, STOP using your credit cards!
Many of our clients use all of their income to pay their credit card bills and then use their credit cards to pay for their living expenses. If this sounds familiar, STOP. Today.
If you are ready to file bankruptcy, you need to stop paying your credit card bills and use your income to pay for your living expenses.
Sometimes clients tell us they were told to max out their credit cards before they file bankruptcy. This is a very bad idea.
Because it is fraudulent. Buying something on credit without the intention to pay for it later is stealing.
The credit card companies will use their computer systems to figure out that you have done this and sue you in bankruptcy to prevent you from discharging that debt.
It is also common for clients to try to reduce their interest rates by taking a large cash advance to pay off another credit card. This can create big problems if you are thinking of filing bankruptcy.
Let me explain:
When you take a large cash advance just prior to filing bankruptcy, most credit card companies will consider this fraudulent even if you didn’t think you would be filing bankruptcy at the time you took the cash advance.
I do believe most clients when they tell me they were trying to avoid bankruptcy when they took the cash advance. However, the bankruptcy code presumes a person is committing fraud when there is significant credit card usage prior to a bankruptcy filing.
What should you do if you have been using your credit cards and you need to file bankruptcy?
We have answers. Please call us so we can protect you.