Free Consultation

using credit cards

I have a good income but a very high debt load which now i am onlly able to make minimum payments to my credit cards and i find myself every month using what i can and maxing them out again. I often have taken cash advances such as 100 to 300 dollars. i have heard that before filing for bankruptcy you should not use your credit cards. how will the above affect me and does it play the same role if you file a consumer proposal???

Posted from: Alberta

One Response to “using credit cards”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

You have heard correctly, once you have decided you are going to need to file either a bankruptcy or a consumer proposal you need to stop using your credit cards. Any activity just prior to filing either a bankruptcy or a proposal could cause you problems. Now what problems really depends on the specific types of transactions and the amount of transactions you are dealing with. As a result you need to contact a local trustee to discuss these things in greater detail.