Legal Question in Bankruptcy in California

bankruptcy

We live off our credit cards and are filing bankruptcy. Can I use my cards up until we file chapter 13? Once we file we will have enough of cash flow to live.


Asked on 5/21/08, 10:50 am

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: bankruptcy

No. As you have decided to file bankruptcy, you know that you are insolvent and, using credit cards -- i.e. borrowing someone else's money without having the ability to repay -- could be seen as fraud. This presumption, by the way, stretches back three to six months.

However, if you are filing, then payments on a portion of your debts will be under your confirmed Chapter 13 plan, except for your ordinary living expenses, perhaps car and house payments, etc.

Have you considered a Chapter 7?

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Answered on 5/21/08, 4:19 pm


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