Credit card usage right before bankruptcy filing?

Question

I have decided to file bankruptcy to escape my poor real estate investment decisions.
I moved to New England from Arizona early this year. A couple of weeks ago it started getting really cold, and being from a warm climate, I did not have any winter clothes. So I went shopping... while I was at it I bought Christmas gifts as well - nothing extravagant - couple hundred here and there... but it adds up.
When I logged onto my credit card website to check the charges, I realized I had charged almost $4000! I am worried that this may be scrutinized by the trustee and/or declared fraud by the creditor.
I am looking for personal experiences with similar situations and recommendations. One idea I had was to struggle a few more months through the bills so that it "drops off the radar."
The debt charge up was certainly not intentionally done to defraud my creditors, but I'm not sure others will see it like that.
I have paid my credit card since the charges. My account is in good standing.

I should add that my income is over $100K, therefore $4K is not as significant to me as it may be to some.
Review of past credit records would reveal this.

Answer 1

If you file a chapter 13, you can probably account for that in your bankruptcy plan, but in a chapter 7 you will definitely be facing an adversary proceeding. I suspect you probably have to file a 13 with your income, but I don't have enough facts to know. If you paid your credit card in full, you would definitely want to file a chapter 13, because that would be a preferential payment subject to the trustee requesting it be returned, the chapter 13 payments can take that amount into account and cause less problems than a chapter 7.

You need to discuss this with an attorney.

Answer 2

If you run up your credit card shortly before filing bankruptcy the card issuer will argue that the debt should not be discharged. You indicate you have stopped now that you have realized your financial situation is worse than precarious so you would have a defense to this. Your attorney--and trust me, you will need one--will give you official advice that you can rely on.

Answer 3

what do you mean your account is in good standing..like you went and bought 4000 worth of stuff..which buy the way is friggin ridulous when you were planning on filing bankruptcy in the near future.
Now wonder you had to file bankruptcy....

Yeah, you should be charged with fraud.

Answer 4

i believe it was a honest mistake but what i think does not matte -- you are going to need a bk lawye anyway -- get one and ask him these questions!!!