Curious
I was wondering if I should pay off my credit cards before I file for bankruptcy. I was only interested in my student loan and was hoping I could keep my cards since I will be paying them off. Is that possible? My cards were used the most the past 2 months.
Posted from: Newfoundland and Labrador
No, there is no reason to payoff one portion of your unsecured debt if you are going to turn around tomorrow and claim bankruptcy on the rest of your debt. In fact, there is a rule in bankruptcy that any debts you repay in full in the three months before you file are reviewed by your trustee to see if you’ve done anything inappropriate.
Now, you need to stop using your credit cards – it is also not appropriate to keep using them once you’ve decided (or even think) that you need to file for bankruptcy.
Give a trustee a call and they will explain all of this in greater detail for you.