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New credit cards before bankruptcy?

Established Member

New credit cards before bankruptcy?

How do the courts view this? I opened a few accounts last October/November and they now have a balance. I planned to pay them off and my other cards, but I've come to the conclusion that I will most likely file chapter 7 bankruptcy. I just have too much debt and my minimum payments have just become unbearable. I don't plan to file until May or June because I just stopped using them a few days ago (although, not many transactions this month) when I decided I would file bankruptcy most likely. I need to stop payments and charges for the 90 days (I've read). As I said, I planned to pay them back, but now I won't since I plan to file. Did I open them too soon to the date I plan to file bankruptcy? Especially since I charged quite a bit on them in Nov/Dec... I moved/paid for school things/etc. I haven't found anything on new lines of credit within 6 months of filing. Any answers would be great. I will call a lawyer next week (I'll have the fee within 1-2 months if I stop payments), but hoping to get some kind of answer about this before then. It's had me worried.

 

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2 REPLIES
Moderator

Re: New credit cards before bankruptcy?

What is your income and your debt? Is it something you can work through rather than file BK?  It does look strange to open up several new cc's just before the holidays and then charge them up and a month later decide you need to file BK. You have only had the accounts 3 months. I would think the creditors might object to your discharge on those specific tradelines, JMO.

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Frequent Contributor

Re: New credit cards before bankruptcy?

Another option may be to pay off those cards and close them yourself.  Then, after you are discharged, you can call them up to see if they will reopen the account.

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