Using Credit Cards Before Filing Bankruptcy

A free guide for Texas residents considering bankruptcy. Filed in W.D. Tex..

What You Need to Know

Using credit cards when you know you will file bankruptcy can be considered fraud. The Bankruptcy Code presumes fraud for luxury goods purchases over $725 within 90 days and cash advances over $1,000 within 70 days of filing. Best practice: stop using all credit cards immediately once you decide to file. The creditor can challenge discharge of those specific charges.

Filed in W.D. Tex.. Courthouse: 615 E Houston St, San Antonio TX.

Frequently Asked Questions

Using Credit Cards Before Filing Bankruptcy

Using credit cards when you know you will file bankruptcy can be considered fraud. The Bankruptcy Code presumes fraud for luxury goods purchases over $725 within 90 days and cash advances over $1,000 within 70 days of filing. Best practice: stop using all credit cards immediately once you decide to file. The creditor can challenge discharge of those specific charges.

Does this apply in Texas?

Yes. This applies to W.D. Tex.. Local trustee practices may vary. Consult a qualified attorney.

Where is the courthouse?

615 E Houston St, San Antonio TX.

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