I am filing chapter 7 bankruptcy and wanted to know if I use a credit card before the court rules. I’ll keep it paid off

Question

I did get the card after filling for bankruptcy with the intent to grow my credit the correct way this time by always paying it off

James L. Arrasmith · Answer

I cannot recommend using a credit card after filing for bankruptcy, as this could potentially cause serious legal issues. Here are some important points to consider: 
 
1. Disclosure requirement: When you file for Chapter 7 bankruptcy, you must disclose all your assets and debts, including any new credit cards or accounts opened after filing. 
 
2. Potential fraud: Using credit after filing for bankruptcy, especially with the intent to not repay, could be considered fraud. This applies even if you currently intend to pay it off. 
 
3. Trustee's role: The bankruptcy trustee may view new credit use suspiciously, potentially jeopardizing your case. 
 
4. Court approval: Generally, you need court approval to incur new debt during bankruptcy proceedings. 
 
5. Impact on discharge: Improper use of credit could lead to those debts being excepted from discharge or even denial of your entire discharge. 
 
6. Building credit post-bankruptcy: There are safer ways to rebuild credit after bankruptcy, such as secured credit cards or becoming an authorized user on someone else's account. 
 
I strongly advise consulting with your bankruptcy attorney before using any credit cards or opening new accounts during your bankruptcy process. They can provide guidance specific to your situation and help ensure you don't inadvertently violate bankruptcy laws or jeopardize your case.

Q: I am filing chapter 7 bankruptcy and wanted to know if I use a credit card before the court rules. I’ll keep it paid off