Many people have questions about bankruptcy, one of them being if they can continue to use their credit cards when they file. It can be difficult to navigate how to run your household while being overwhelmed by debt, and using credit cards to make ends meet can be tempting.

It’s important to know when to stop using your credit cards before filing for bankruptcy and what you should do with your cards as you go through the steps of the bankruptcy process. Here’s what to know.

Is It Possible to Keep Using My Credit Cards?

While you can still use your credit cards during a bankruptcy proceeding, the more pressing  issue is whether you actually should. Using your credit cards prior to filing for bankruptcy might have serious negative consequences. While credit card debt may be discharged through a bankruptcy, a creditor might object to the discharge of particular charges that came from a shopping binge right before declaring bankruptcy.

A Note About Maxing Out Your Cards

Purchasing expensive things or services that aren’t necessary, or buying goods or services valued at $725 or greater within 90 days prior to filing for bankruptcy is assumed to be fraudulent. The creditor can object to the debt being canceled, but the debtor, not the credit card company, will be the one to show evidence that their purchases were legitimate. The debt will not be discharged if the creditor wins.

If you know you’re going to file for bankruptcy, don’t take on more credit card debt you can’t afford to repay, because you may not be able to get it discharged.

What Happens If I Stop Paying My Credit Card Bill?

It is typically not a good idea to discontinue paying on your credit cards until you are certain that going bankrupt is the right approach for you. If you avoid paying your credit card bills and later discover you don’t want to file bankruptcy, you will suffer legal and credit reporting consequences. If you’re confident you’ll be filing for bankruptcy, though, it’s perfectly fine to discontinue making credit card payments, even if you won’t be filing for some time.

When to Contact a Dallas – Fort Worth Bankruptcy Lawyer

You should contact a Dallas – Fort Worth bankruptcy attorney as soon as you realize you are in financial trouble and cannot meet your monetary obligations. Call Sims Bankruptcy Law, PLLC today for a consultation by dialing 469-751-7467 (DFW) or 254-304-7161 (Central Texas).