Tavere

Free Case Evaluation

510-255-4646
  • Home
  • About Firm
  • Practice Areas
  • Testimonials
  • Attorney
  • Blog
    • Chapter 7 Bankruptcy
    • General Bankruptcy
    • Chapter 13 Bankruptcy
    • Bankruptcy Law
    • Bankruptcy News
    • Types of Debt in Bankruptcy
      • Bay Area Bankruptcy Attorney
  • Contact Us
Stop Worrying About Your Debt

A Better Tomorrow

Starting Today

Stop Worrying About your Debt.
Call us Now to Take the First Step.

Click Here
Millions in debt discharged for our clients

Real Concern

Real Help

Millions in debt Discharged
For our Clients. Call Today, let us Help!

Click Here

When Should I Stop Using My Credit Card Before Bankruptcy?

Admin on February 10, 2023 Posted in Bankruptcy Law, Blog

Filing for bankruptcy is a difficult decision and one that should not be taken lightly. But if you have already made the decision to file, there are certain things you should and shouldn’t do before filing to ensure the best possible outcome.

One of these things is understanding when to stop using your credit cards before filing for bankruptcy. The Bay Area bankruptcy attorney at the Law Offices of Melanie Tavare can explain how using your credit cards before bankruptcy can affect the outcome of your case and advise you on when you should stop using credit cards in your particular situation.

The Effects of Credit Card Use Before Bankruptcy

It is crucial that you stop using your credit cards before filing for bankruptcy. When you continue to use them, your creditors will assume that you are able to pay off the debt, which could make it more difficult for you in the long run.

This is because when creditors see continued credit card use, they may think that your financial situation isn’t as bad as you say it is and may challenge your right to file for bankruptcy. In addition, any money spent on unnecessary items could be considered fraudulent under bankruptcy law, so it is important to avoid it altogether before filing.

Under 18 U.S.C. § 157, the consequences of being found guilty of bankruptcy fraud can be dire because it is considered a federal crime punishable by up to five years in federal prison in addition to hefty fines.

What to Do With Your Existing Credit Cards?

When considering whether or not to file for bankruptcy, understanding when and how much credit card debt must be paid off beforehand is key in order to ensure a successful outcome.

Once you have decided not to use your credit cards anymore, the next step is figuring out what to do with them. Since canceling them could hurt your credit score and make it more difficult for you in the long run, it’s best just to keep them open until after the bankruptcy process has been completed.

This will help preserve some of your credit score and make it easier for you to rebuild your credit once the process has ended. You also don’t have to worry about accumulating additional debt since creditors won’t be allowed to extend new lines of credit while you are in the midst of a bankruptcy proceeding.

Thus, by ceasing all new purchases on those cards prior to filing and keeping existing ones open until after the process has been completed, individuals can safeguard their finances while still giving themselves the time and space necessary during this difficult period.

Consult with a Bankruptcy Attorney About Your Credit Card Use

It’s always wise to consult with an experienced attorney who specializes in bankruptcy law before filing for bankruptcy. Melanie Tavare, a bankruptcy attorney who serves clients in Hayward, Oakland, and throughout the Bay Area, can examine your particular case and explain when you should stop using credit cards before bankruptcy, given your particular situation. Call 510-255-4646 today to schedule a free case review with Melanie Tavare. 

Recent Posts

  • What Can You Do if You Cannot Keep Up With Chapter 13 Bankruptcy Plan Payments?

    If you filed for Chapter 13 bankruptcy but are struggling to keep up with the payments outlined in your debt repayment plan, you may not kn

    category : Bankruptcy Law, Blog

  • What is a Means Test and How Does it Work?

    When considering filing for bankruptcy, one of the most important steps is the means test. This test evaluates your financial situation to

    category : Bankruptcy Law, Blog

  • When Should I Stop Using My Credit Card Before Bankruptcy?

    Filing for bankruptcy is a difficult decision and one that should not be taken lightly. But if you have already made the decision to file,

    category : Bankruptcy Law, Blog

  • Can Filing for Bankruptcy Stop an Eviction?

    Facing eviction can be a stressful and difficult experience. If you are considering filing for bankruptcy to stop an eviction, there are ce

    category : Bankruptcy Law, Blog

search this year

  • February 2023
  • January 2023
  • Search by Year

  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • img

    Quick Links

    • Bay Area Bankruptcy Attorney
    • About Firm
    • Practice Areas
    • Attorney
    • Communities Served
    • FAQ
    • Disclaimer
    • Contact Us

    Follow Us

    • Facebook
    • Twitter
    • Google
    • Yelp

    Contact Us

    • Oakland Office

      1300 Clay St. Suite 600
      Oakland, CA 94612

    • Hayward Office

      24301 Southland Dr.
      STE. 310
      Hayward, CA 94545

    • 510 255 4646

    We serve the following localities: Alameda County, Alameda, Berkeley, Castro Valley, Fremont, Hayward, Livermore, Oakland, San Leandro, Union City, Contra Costa County, Antioch, Brentwood, Concord, Martinez, Pittsburg, Richmond, Walnut Creek, San Francisco County, San Francisco, Albany, Ashland, Dublin, Emeryville, Newark, Pleasanton, San Lorenzo, and Alamo.


    The Law Offices of Melanie Tavare is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code


    |

    2022 © Copyright law office of Melanie Tavare