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THE 90-DAY CREDIT RULE
If you plan to file bankruptcy, use an expert
Orange County Bankruptcy Attorney
and please be aware that you must
NOT use your credit cards for at least 90 days before the date your petition is
filed. If you do, the Bankruptcy Trustee and the Court may look upon any
charges made during that 90 days as an fraudulent and will likely not discharge (wipe out) those debts in your bankruptcy.
There are some minor exceptions, however. If you use a
credit card for small "necessities of life" such as food, necessary
clothing, gasoline, and similar items, and the amounts charged are relatively
minor, it is unlikely that the court will require you to pay for such charges.
While there are no hard and fast rules, keep in mind that an experienced
bankruptcy attorney in Orange County
will advise you that it would be wise to charge only those expenses which are absolutely necessary for
your family's survival and, even then, keep the amounts as small as possible.
The 90-Day Preferential Treatment of Creditors Rule
There is another rule that
Orange County bankruptcy lawyers
know and that you need to be aware of, also, and that
is you must treat all of your creditors equally. That is, you will not be
permitted to pay one credit card company $500 and others nothing merely because
you were hoping to protect one creditor from suffering a loss because you're
hoping to keep that creditor's card after filing bankruptcy with a
bankruptcy lawyer in Orange County.
If you pay any creditor $600 or more over and above the
amount you would normally have paid it, the excess amount could be recaptured by
the Trustee and redistributed to the remaining creditors.
This doesn't happen often, but it does occur, so keep it in
mind when you're trying to wind your way through the though process that goes into filing bankruptcy. This is why using our experienced
Orange County bankruptcy attorneys
is the best thing you can do for your future.
Orange County Bankruptcy Attorney in Irvine, Ca - Chapter 7 Expert - Stop Foreclosures, Repossessions, Evictions, Collections - All Questions Answered - Walk Away - Start Fresh.
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