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Credit card use before filing bankruptcy

Most of my debt is credit card debt with three different cards. I want to file chapter 7 bankruptcy but I continue to use one of the cards for essentials. Does that mean I can't file bankruptcy until I wait a certain amount of time? Thank you.

credit card use and bankruptcy

No, you can file for bankruptcy protection, but it is possible that some of your more recent credit card debt may be deemed non-dischargeable, meaning you will still have to pay it back. In a nut shell, Section 523(a)(2)( c) of the bankruptcy code says that non-essential credit card debt (such as luxury good or services) to any one card company that equals or is greater than $500 and was incurred within 90 days of your bankruptcy filing is presumed to be non-dischargeable.  Also, credit card debt of ANY amount and incurred at ANY time may, in theory, be deemed non-dischargeable if the card company can show that you knew or should have known that you would have been unable to pay it back. Although that may be difficult for the creditor to prove, it is something to keep in mind.

Given your situation and recent use of the card, you should really discuss this issue with a bankruptcy lawyer.   She will likely tell you to stop using the cards and may encourage you to wait as long as possible after your last use of the cards before filing for bankruptcy.  Hope that helps.

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