#5 of 33 Things Not to Do When You Are About to File for Bankruptcy

Posted by on Sep 4, 2014 in Uncategorized | 0 comments

#5 of 33 Things Not to Do When You Are About to File for Bankruptcy

Don’t use those convenience checks your credit card company sends you.

 

They are called “convenience checks” for a reason–they are easy to use!  You just fill it out and you can pay for something, which then appears on your credit card on the next statement.  It normally has a much higher interest rate than normal charges, too.

 

These convenience checks are just like cash advances–you don’t want to use them within 90-180 days before you file.  If you are using them to transfer a balance from one card to another, I would recommend waiting a year before you file.  When you transfer the balance, one creditor gets paid in full, while the other has a new, much higher balance.

 

I have seen some cases where the attorney argued that the convenience checks plainly ask you to transfer a higher balance to get a lower interest rate, so these checks shouldn’t make any difference before filing for bankruptcy.  A lot of people in bankruptcy have been playing the “credit card shuffle” to get a 0% interest rate so they can try to pay down their balance, but sometimes it’s not the cure-all they sought.

 

If you are transferring one credit card balance to another card regularly, it might be time to sit down with a bankruptcy attorney to see if that may be a better long-term solution for you.