Having used credit cards beyond your financial means is most likely what has brought you to consider filing bankruptcy in the first place. The irony of course lies in the fact that you have already entered the vicious cycle of going deeper and deeper into debt to a point where you depend on your credit card for survival and may be forced into bankruptcy as a result. When filing for bankruptcy, a judge may not look favorably upon the excessive use of your cards, despite the fact that frequent use was not a choice but a necessity.
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Not all card use is equal
The bankruptcy code section 523 addresses the fact that you had no other option than to charge your card for essential goods. This code differentiates between essential and non-essential goods. If you charged non-essential, or "luxury goods" in the amount of $500 or more to your credit card within 90 days prior to filing for bankruptcy, these charges are presumed non-dischargeable. If you purchased these non-essential items within 90 days prior to filing, it would be extremely difficult to defend them, so creditors' arguments will most likely prevail.
Acting in good faith
Whether you have acted in good faith is a much more difficult argument to make for the creditor. So credit card debts of any amount, incurred at any time prior to filing may be deemed non-dischargeable if the creditor can prove that the debt was incurred under false pretenses. Unless there is hard evidence of fraudulent behavior, the creditor may have a tough time making a convincing argument to prove that you willfully spent money, knowing you will file bankruptcy in the future. If you end up in an argument between your word against the creditor's word and the creditor files an objection, consider the legal costs of responding and defending such an objection before you are too deep into it.
Credit as last resort
It is good practice to delay filing for bankruptcy as long as possible following your last use of your cards. This is the best evidence of acting in good faith. Also be diligent with your outstanding payments, even if you can only make minimum payments. If you see no other option than to use your credit cards for everyday life's expenses, you know you are heading for bankruptcy and it would be a good idea to contact a bankruptcy lawyer. Once you have taken that step, think twice about using your credit card beyond this point.
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