Legal Question in Bankruptcy in Pennsylvania

I am filing ch 7 Bankruptcy. In the past year I have not used credit only my own cash and a recent 401k withdrawl for expenses and early xmas shopping. Again no credit use. Just my own money to cover expenses and personal purchases that show on my bank statement. Would this be a real issue with filling for bankruptcy?


Asked on 10/23/14, 11:29 am

1 Answer from Attorneys

Nancy Delain Delain Law Office, PLLC

You should have no issue at all in a bankruptcy from paying for expenses with cash rather than with credit. In fact, you've done yourself a HUGE favor by doing that; no one can come after you at this point claiming fraudulent use of credit cards (one way that creditors can object to a discharge is by claiming the debtor used their credit cards in anticipation of discharging the debt in bankruptcy, thereby getting something for nothing; since you haven't used them for a year, you're not likely to face such a challenge).

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Answered on 11/14/14, 8:11 am


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