Is your debt becoming too much to handle? You are not alone. Maybe you have tried to work it out with your creditors or worked with debt negotiation companies, but you find yourself still struggling with debt. Sound familiar? You are not alone. Maybe you are finally ready to prepare for bankruptcy. If so, you need to know:

Do Not Run Up Your Credit Cards

It is important that you stop using your credit card as soon as you are preparing to file for bankruptcy. Your attorney will go into this in greater detail with you, but if you stop making new charges a few months before filing you have the ability to discharge your debt through your bankruptcy. However, this does not mean that you should max out your credit cards. You should always use credit cards responsibly. The importance of this is that if you run up your credit cards prior to filing bankruptcy, it can trigger a nondischargeability action.


Under the Bankruptcy Code, credit accumulated over $1,225.00 within 60 days prior to filing bankruptcy can result in the debt not being discharged. This means it will need to be repaid by you. However, you should know that creditors will look back further than 60 days. Also, it is likely to create creditor problems, if you charge a lot of money on credit cards before you file. This is why we recommend that you should stop using your credit cards altogether, if you are ready to file for bankruptcy.

So, What Is a Nondischargeability Action?

In bankruptcy, some debts will not be automatically determined as dischargeable. So, creditors will ask the court to decide if they are dischargeable or not. If the creditor does not contact the court for this or raises an issue and the court disagrees, the debt will be discharged.

Also, any luxury goods or services purchased 90 days before your filing are considered non-dischargeable. The creditor can file a lawsuit against you within the bankruptcy case (an adversary proceeding).

Need More Information?

At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like you to get to know us. We want you to be sure that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case. Let us offer you representation to the fullest extent of the law. Call us today to set up a free consultation.