Credit Card Use Prior To Bankruptcy

August 26th, 2005 by Questions

30+ days prior to going bankrupt, I used a credit card not knowing at the time that I was going to claim bankruptcy. Unfortunately at the time it was my only source of funds, my young son was beginning the school year and in need of clothes, school supplies etc. I did not know any details regarding bankruptcy. When I finally realised that I was unable to get ahead financialy I began to investigate my options. I first approached a number of financial institutions regarding a debt consolidation loan, I was refused, the institutions felt I had accumulated more dept than I was able to handle. They suggested bankruptcy. This all happened within a matter of days. The Licensed Insolvency Trustee did not inform me of rules regarding credit card use. Now that bankruptcy has been filed and I have been discharged, a credit card company is suing me for all monies owing plus interest. I am still working only part time, and my husband is unemployed. We are most definitely not in a position to pay such a debt, as we are barely surviving with two small children. How do I handle this situation?


One Response to “Credit Card Use Prior To Bankruptcy”

, A licensed trustee said:

First, you should consult your trustee for advice. Second, if legal action is being taken against you, you should consult a lawyer.

If a creditor can prove that you commited fraud, you will be required to pay the money back.

However, if this case does go to court, you will have a chance to explain to the judge what happened, and you may be able to convince the judge that you did not intend to commit fraud.

Your final option will be to discuss this with the creditor, and perhaps work out a settlement so that you avoid court, perhaps by agreeing to pay them a set amount each month over a period of time.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)