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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I have had succesfull construction company for 15 years, however

Customer Question

I have had succesfull construction company for 15 years, however this year is incredible big slump in the business, therefore I am not able to pay off all my credit cards; my total revolving debt is about 200,000. I chose some credit cards that I am using and paying minimum due. I am thinking however about bankrupcy. My question is when should I file for bankrupcy and see my lawyer, can I use now those credit cards where credit is still available until the end?
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 8 years ago.
In most cases, it is advisable to stop using credit. Creditors can object for usage totalling 600 over the 90 days before filing a case, and that debt would be non-dischargeable. I usually tell my clients to wait 90 days to file if they have had recent usage, and advise them to make some payments on that debt, to lessen the likelyhood of any other objections. Talk with your lawyer to plan the best time to file. If there has been no useage on the cards in some time, you can probably stop making payments on those cards.
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Customer: replied 8 years ago.
When filing for bancrupcy can I be late payments on some credit cards for instance - 10 months late, while on other credits I stopped using 90 days before bancrupcy. Other words - I have twenty credit cards and because of very slow my business I stoped making payment and using ten of them; can I still use those ten remaining accounts that have credit available and make minimum payment due? When I decide file bancrupcy then I will stop making payment and using all of them 90 days before?
Expert:  Terry L. replied 8 years ago.
Yes, you can be delinquent in payments. There is no requirement to be current, behind etc. If you are behind before filing, you just run the risk of being sued by the creditor to collect on those debts, but they will be discharged in the case regardless, once you file the bankruptcy. I recommend stop using all credit, to avoid objections in the bankruptcy case- recent usage over $600 within 90 days before filing the case is considered non-dischargeable under the bankruptcy code. I always recommned stop using immediately, regardless if you are filing in 90 or 120, or 180 days. However, you should consult with a local bankruptcy attorney, because the facts of your case would ultimately decide the best plan of attack.