QUESTION
Can a recent payment to store credit card affect bankruptcy?
Asked on Aug 04th, 2011 on Bankruptcy - California
More details to this question:
I have over $20,000 dept in credit cards that I haven't used in over a year (and didn't pay them over a year). I do have one store credit car that I used twice in last year and I'm making regular monthly payments on it. So I made a last payment in July. Can that be a problem if I file for chapter 7? I am planing to file within next two weeks. And should I pay of that card( it is small amount balance) and close it before I file or no?
11 ANSWERS
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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A recent payment to a credit card will not negatively affect the filing of bankruptcy. Don't pay one creditor over another in anticipation of bankruptcy.
Answered on Aug 05th, 2011 at 11:08 PM
It shouldn't be a problem for you but if the payment was over $600, the court can reverse the payment and spread it out equally among all your creditors.
Answered on Aug 05th, 2011 at 4:38 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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Probably not. I am happy to discuss your options with you
Answered on Aug 05th, 2011 at 11:34 AM
Trusts and Estates Attorney serving Jacksonville, FL
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Law Office of David M. Goldman PLLC
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Your bankruptcy lawyer can see what the use and payments were for and if that will cause a problem. Generally it will not, but the payment may be taken back by the trustee and distributed amongst the other creditors.
Answered on Aug 05th, 2011 at 10:33 AM
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You should be fine to file your Chapter 7 without paying that off. If you file, they may come after you, but the chance is small, and you can settle the debt if they do in the bankruptcy.
Answered on Aug 05th, 2011 at 10:33 AM
Glen Edward Ashman
Your question indicates you plan to file without a lawyer. DON'T. Pro se bankruptcies usually go badly. Recent payments and charges can be a problem in bankruptcy and paying an account before filing has to be reported in the case and may add to the problems. The size and date of the charges and payments matter, and an attorney will determine when and if you should file. Making a mistake on timing can be costly.
Answered on Aug 05th, 2011 at 8:49 AM
Criminal Defense Attorney serving Portland, OR
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Jacob D. Braunstein, Attorney at Law
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There is a section in the bankruptcy petition that asks about recent payments to creditors. You should consult with an attorney regarding the specific consequences of paying off any one creditor prior to filing.
Answered on Aug 05th, 2011 at 7:23 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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No, don't pay it off. Usually of you're making payments in the normal course of business it won't be a problem. If you're only paying one, you.should have a good reason. If that's the only card you've used, that might.be a good reason.
Answered on Aug 05th, 2011 at 7:20 AM
2 Awards
You should have no problem with any of your cards. I do not recommend paying off the card. It may result in the trustee recovering the payment to share with all creditors in any event.
Answered on Aug 05th, 2011 at 7:17 AM
judith runyon
Not necessary to pay it off, as they will not let you use it after filing Bankryptcy
Answered on Aug 05th, 2011 at 7:12 AM
Bankruptcy Attorney serving Torrance, CA
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Kalra Law Firm Professional Corporation
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Fact that you made payment in July, 2011 on a credit card, should not affect you ability to file Chapter 7 bankruptcy, if you are otherwise eligible.
Answered on Aug 05th, 2011 at 7:11 AM