How long should a person wait before filing

[minnesotakent]

Minnesota

How long should a person wait after using credit cards before filing bankruptcy?

 

[jross2]

It depends on what you used them for, i.e., large cash advances, luxury items, vacations, etc, you better wait at least 6 months. Normal day to day living expenses are not likely to get much attention by the trustee, nor is it likely the CC co would raise objections. The longer you can wait, the less problems will arise from their use.

 

[eloqid]

I once thought the same way, wait as long as you can. But then I started on the credit repair afterwords. Creditors can report your credit account as a charge-off, and as long as they charge-off the account BEFORE you file for BK protection it is a CORRECT listing and most of the time they will not correct it. They will also report a past balance due, this will hurt in terms of score.

 

[minnesotakent]

So I should probably file before the cards are charged off.

How long after I stop making payments will the credit card companies charge the debt off?

 

[eloqid]

Creditors varies in the # of days they allow an account to become delinquent before it charges off. Generally, an account will charge-off once it reaches 180 days past due, while some creditors allow 210 days. A few creditors will never consider an account as charged-off providing they are receiving some level of payment periodically. Accounts due-in-full within 30 days of statement receipt will sometimes charge-off after a mere 90 days past due.

Some states may regulate how and when a creditor may consider an account as charged-off.

 

[HomeGuru]

Minnesota

How long should a person wait after using credit cards before filing bankruptcy?

**A: it depends on the type of BK that will be filed. If BK 7; wait 7 years. If BK 13; 13 years.