FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

"*" indicates required fields

Company

This field is for validation purposes and should be left unchanged.

Name*

Phone Number*

Email*

This field is hidden when viewing the form

What's the best time to contact you?*

Location*

What city do you live in?*

Total Unsecured Debt*

*Unsecured debt includes credit cards, lines of credit, bank overdrafts, payday loans, and unsecured personal loans (excluding student loans). It does not include mortgages and car loans.

This field is hidden when viewing the form

Source

How can we help you?

If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

Agreement*

I understand that Bankruptcy-Canada.ca does not provide debt relief services directly and agree to securely share this information with a local Licensed Insolvency Trustee (LIT) for a free, confidential consultation.

Select Trustee By Province

Using credit cards prior to bankruptcy

I owe a considerable amount of debt to credit cards and would like to go bankrupt but for the last 3 months, I have been using my credit cards to pay utilities, purchasing gas for my car and buying groceries etc because of getting laid off. I am concerned that the credit card companies may challenge the bankruptcy for these purchases up to the date of bankruptcy. Could you explain how this works to me?

Posted from: British Columbia

Share this post:

X (Twitter) Facebook Pinterest LinkedIn Email

One Response to “Using credit cards prior to bankruptcy”

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

You are correct that the use of credit immediatly prior to the filing of a bankruptcy can cause difficulties.

In general there are two general rules to follow:

1. Once you know you are going to have to file a bankruptcy or a consumer proposal stop using these cards.

2. As long as you have only used thiese for living expenses there is little likihood of difficulties. Of coures this is within reason, if you use these cards to live on and then divert your cash to travel or other extras, then the liklihood of this causing you difficulties increases substantially.

So from the sounds of it I wouldn’t be to concerned, but you are best to stop using them immediatly and it is probably a good idea to meet with a local trustee.