Legal Question in Credit and Debt Law in Michigan
Credit Card Issues
I have a balance on two credit cards. I have lost my job. Eventually, I will most likely have to file bankruptcy but I probably won't for some time (over 6 months). In order to conserver cash, my intention is to pay only for food, housing, etc. If I transfer the balance from one of the credit cards to the other in order to consolidate, and keep in good standing with the one credit card, am I going to get in trouble? I would basically be tranferring the debt and then not making any payments on it. Thanks!
2 Answers from Attorneys
Re: Credit Card Issues
You should definitely not transfer a balance without consulting with your bankruptcy attorney. We often consult with clients and plan for a filing down the road for a number of reasons. Sometimes the client has had a recent reduction in income which may affect whether or not they "pass" the means test which has a six-month lookback requirement.
Bankruptcy is not a good "do-it-yourself" project because the bankruptcy laws are numerous and complex. If you make a mistake, your case can be dismissed. This is common with "in pro per" debtors.
Re: Credit Card Issues
Why would you bother to stay in good standing with one credit card company, and not pay the other, especially when you are going to file bankruptcy? It is not going to make a difference on your credit report. I would suggest consulting with a bankruptcy lawyer regarding your entire situation and to explore all of your options, as you may not even qualify for bankruptcy if you are still receiving a severance, unemploymenet or get another job soon - whether a person qualifies for a Chapter 7 or Chapter 13 bankruptcy, or neither, depends on several factors and can only be assessed after a full consultation with a lawyer.
If you decide to consult or retain a bankruptcy lawyer, please contact me to discuss the fees and set up a meeting.
Thanks.
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