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Ask dylatess Your Own Question
dylatess, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5142
Experience:  37 plus years of experience specializing in bankruptcy law
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Hi. I have a bankruptcy question. Can you help?

This answer was rated:

Hi. I have a bankruptcy question. Can you help?
Over 34 years, I have assisted my clients with debt problems having filed more than 32000 Chapter 7 and Chapter 13 Bankruptcy petitions.

What is your question?
Customer: replied 4 years ago.

Hi. I wanted to know if there is a limit to how much of a debtor's available credit can be used just prior to filing for bankruptcy, and if there is any penalty, such as not having a bankruptcy filing approved, if a person does use their available credit prior. Also, is there any such thing as a recommended window of time in which a person should not use their credit prior to filing?

If you use any credit cards for cash advances in any single amount of $500 or more within six months of filing bankruptcy, that is grounds for the bankruptcy trustee to have your case dismissed.

Please rate my answer as ok or better. Thanks.
Customer: replied 4 years ago.
Do you mean just cash advances or any charge that exceeds 500 dollars?
Cash advances. Likewise, credit card purchases close in time to filing bankruptcy are also scrntinized but it is the cash advances that could lead to your case being dismissed.
Customer: replied 4 years ago.
Thanks. Are certain types of purchased charges, such as vacations and furniture, more likely to be problematic than others? Do you recommend stopping all charges 6 months prior to filing or is it generally not necessary, as long as no cash advances are requested? I just made a hotel charge for two nights for over 600 dollars. Should I try to cancel the reservation and rebook it for one night at a time?
Yes, rebook the hotels. Avoid big ticket purchases. Avoid vacation purchases. And best advice is to stop use of all cards for at least 90 days before filing.

I wish you well.
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