When to Stop Using Credit Cards Before Bankruptcy

Americans are facing unprecedented credit card debt, totaling $1.21 trillion, with average rates above 22%. If considering bankruptcy, it’s crucial to stop using credit cards at least 90 days prior to filing, as recent purchases are closely scrutinized for potential fraud. Courts differentiate between essential and discretionary spending, impacting bankruptcy proceedings. Alternatives like debt consolidation, settlement, and credit counseling can also provide relief without the severe consequences of bankruptcy.