If you have credit card debt, filing Chapter 7 Bankruptcy with NJ’s lawyers could help to resolve some of that burden. But once you’re considering filing for bankruptcy, most people will tell you to stop using your credit card! Are they right? Find out more about credit card use while filing for bankruptcy when you keep reading.
Bankruptcy Attorneys in NJ Advise on Credit Card Use
Credit is a wonderful thing, but it gets many people into trouble. In fact, if you’re considering Chapter 7 bankruptcy, you’ve probably built up more credit card bills than you can handle. Those bills aren’t just an annoyance—they represent your debt, or the money you have agreed to repay to your creditors. If you’re already on your way to admitting you can’t cover your existing debts, it’s not a good idea to take on more. This is true just in principle, but also has the potential to affect your bankruptcy case in New Jersey: most judges frown upon additional expenses that will need to be addressed with bankruptcy, and some won’t even grant those expenses! Spend smart for the best outcomes.
Avoid Buying These Items at Any Cost While Filing Chapter 7 Bankruptcy
If you find that you still need to continue to pay for utilities, food, or transportation with your credit card while applying for Chapter 7 bankruptcy, most judges will show compassion. But what should you avoid buying? Luxury items! Don’t go out and buy a new set of furniture for your home, a shiny new video game console for the kids, or that fancy watch you’ve been eyeing—you need to manage your debt, not make it bigger! Further, if it looks like you are purposely “spending up” your total, you might even be charged with fraud.
Can I Take A Cash Advance Before My Bankruptcy Case Closes?
A cash advance is almost always a bad idea; this is even more true if you have a bankruptcy case in progress. Lawyers in NJ know that taking a cash advance during your bankruptcy isn’t smart, and usually this debt won’t be discharged—you’ll need to pay it off. In some cases, actions like taking out a cash advance could be considered fraudulent, so don’t try to “sneak past the gates.” You’re better off disclosing the full extent of your debt and spending to your bankruptcy attorney in NJ so they can advise on your options and spending.
Filing Chapter 7 bankruptcy in New Jersey isn’t an easy process to do by yourself. There are so many rules, regulations, red tape, and hurdles to cross, you need an experienced attorney to help you manage your bankruptcy case. Contact the Law Office of Robert Wachtel in West Orange, NJ, to start finding freedom through bankruptcy.