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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2897
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Hi, I considering fialing bankruptcy. I can still afford my

Customer Question

Hi, I considering fialing bankruptcy. I can still afford my house and car. I have unpaid property taxes , they are 2mos late. Do I max out my last credit card to pay them or is there an option to have them lowered. I ama single mom that is owed $25,000 in child support and business has been cut in half. I can't make my credit card payments anymore. 4 card are current 2 are 1 mon. behind. I owe $40,000.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 8 years ago.
Any recent usage over $600 within the 90 days before filing could draw an adversary objection in your bankruptcy case. The creditor will be able to show that it is not dischargeable, especially if you were in contemplation of bankruptcy at that time as well.

I recommend that my clients stop using all credit cards before filing. You can, in most cases, stop paying the consumer debt, and use those funds to focus on the house and car instead.

If you are too far behind, then you might consider a chapter 13, which can consolidate your debt, get your home and taxes caught up, and pay off your car. Talk to a local bankruptcy attorney, and they can advise you who best to pay as you prepare for bankruptcy. They can also run the calculation to show you what a chapter 13 repayment plan would look like as well.
Terry L. and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
Can I max a credit card out to pay my taxes and then wait to file? How aong do I have to wait?
Customer: replied 8 years ago.
So I can do that and wait the ninety days to file? Just keep paying my house and car?
Expert:  Terry L. replied 8 years ago.
I advise stop using all credit cards, period.

Even if it is outside the 90 day window, the creditor can still object, showing that you were insolvent when you charged on the account, knew that you were insolvent when you charged it, and thus could win an argument to show that the debt is not dischargeable.

I advise all clients that have had recent usage in the last 90 days over $600 to wait 90 days to file as well.

I know that you want to focus on the important items, but if you do it incorrectly, it can come back to bite you afterwards.