How long before filing bankruptcy are you supposed to stop using the credit cards?

Filing for bankruptcy is a complex and thorough process that takes into account all aspects of a debtor’s financial circumstances. Purchases made by credit card within 90 days of filing for bankruptcy are examined to pick out cases truly suitable for bankruptcy, or worse cases of bankruptcy fraud.

The credit card purchases are distinguished between consumer and non consumer purchases, being required living expenses. When spending is excessive and made towards consumer products rather than living costs, bankruptcy fraud will likely be suspected. To prove this, creditors must prove that the debtor was spending with the knowledge of their inability to repay the debt.

However, after bankruptcy is filed, all efforts should be made to stop credit card use all together. Prolonged credit card use should only be used as a necessity for living expenses, and never for use of consumer product purchases. These debts will have to be repaid regardless of the bankruptcy’s outcome. When a credit card is necessary, prepaid credit cards are a viable and safe solution that will not disrupt the bankruptcy process.