Legal Question in Bankruptcy in California

Using credit cards

What's the law on using your credit cards before you declare bankruptcy. Can the creditors find out that you used the credits card just a tad bit before you claimed bankruptcy...even after 60 days? Can they bring that up to the judge. I read that if you use 1000 dollars (all together or per credit card?) your liable to pay it.


Asked on 12/30/02, 12:28 pm

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Using credit cards

The law is that any consumer debts or cash advancesexceeding $1,150 for luxury items incurred within 60 days prior to filing bankruptcy are presumed to be nondischargeable. All this is is a shift in the burden of proof from the creditor to you. Of course a creditor can "find out" just by looking at the statements. Your usage of the cards is one of a couple dozen factors the court can use to decide if there was fraud in the usage of the cards pursuant to 11 USC 523.

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Answered on 12/30/02, 12:34 pm


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