Is it a wise decision to live on your credit cards? What are the repercussions? How will this affect your plan to file for bankruptcy? For many of us it really is not a choice, when there is no income coming in and bills need to be paid turning to your credit cards seems like the only solution.
When you are filing a chapter 7 bankruptcy or a chapter 13 bankruptcy, when you go to court the credit card companies may challenge the filing for bankruptcy by saying you borrowed with no intention of paying the debt back. If the judge makes an assessment that you did indeed borrow money via a credit card and you knew you did not have any realistic means of paying back the debt, according to bankruptcy law the judge may in extreme cases not allow the debt to be discharged.
As a general rule it is a bad idea to live on your credit cards. However this can be an extremely common practice for many debtors prior to making the decision of filing bankruptcy. If you are uncertain of whether a debt is eligible for discharge through a chapter 7 bankruptcy or can be repaid through a chapter 13 bankruptcy reorganization plan, you should seek the advice of a licensed bankruptcy attorney.
Most bankruptcy attorneys will give you a free bankruptcy case review and thoroughly and meticulously review each and every one your debts to see if they are eligible. Only a bankruptcy lawyer is well versed on how to file bankruptcy in the optimum manner which is beneficial for you. A bankruptcy attorney can answer all your bankruptcy questions, not just regarding eligibility of dischargeable debt but also tough bankruptcy questions such as do you qualify under the means test.
Even if you have been living on your credit cards don’t fear that this will impede upon your eligibility for file for bankruptcy. Instead just remember that the bankruptcy law was created to provide protection to you from creditors. Bankruptcy attorneys are out there to help you protect yourself. Contact a bankruptcy lawyer near you for a free bankruptcy case evaluation and breathe easier knowing relief is in sight.
About the Author:
Jay King is a owner of BankruptcyIntro.com. We’ve all heard of large companies filing for bankruptcy or “going bankrupt” and most of us would think that particular company must be in trouble.