Making a luxury purchase within 90 days of filing.

[Anonocean]

Hello everyone. I wish I would've found these forums about 2 months ago, but I've only been lurking the last few days and recently joined. There is some great information here, and many knowledgeable and helpful posters.

My question is, would making a luxury purchase of $540 within 90 days of filing bankruptcy be grounds for completely dismissing/denying my case? Or, would I only have to pay back the credit card it was purchased on?

This is my situation. Before deciding that I needed to file bankruptcy, I sold my computer to help pay bills. Now, I really wish I wouldn't have. I use my computer for so many things as both a form of entertainment, and for school. I sold my computer about a month ago for ~$650. I have a new credit card(acquired before I decided to file, I was going to transfer and try to consolidate some of my debt) with nothing on it. I was thinking about purchasing a new computer, and simply accepting the debt when/if the creditor objects. If there is a way to exclude a debt/credit card from bankruptcy, I would go ahead and do that so it doesn't look like I'm trying to abuse the system.

I'm just wondering if I'm getting myself into more trouble than I realize here. Could my actions cause my bankruptcy to be dismissed completely? My ideal scenario is that all of my other debts are discharged, and I'm left with the bill for the computer which seems like a wash to me since I sold my other computer for ~$650. This would be the only purchase on that credit card, ever.

Thank you in advance.

[freshstart06]

if the trustee ask just explain just like you just did, you know there is nothing you can do now and actually you are only over $50. I look at like this if they dismissed then it was meant to be don't worry about something that has not caused problems, also, the credit card you use just tell them you plan on keeping the card, do not get that card discharge in BK, that will look good. I think the problem is when you purchase something big then discharge the card. I had to use my new card that I got just before filing to purchase gas and food, If the trustee has a problem with it then I don't know what to say, I had to take care of my family. I plan on keeping the card, it only has a $300 limit and I am sure it will be okay.

[Granny]

I hope you have not already used that card and made that purchase. If you haven't, I would recommend checking the local pawn shops and picking one up there for the time being. You can always buy a better one later, with cash!!!

[freshstart06]

granny it looks like she/he already used the card. Granny, can they take it back??? would that solve the problem???

[PaKettle]

Can you except (reaffirm) credit cards? I thought that one had to file on ALL accounts except for a car or mortgage?

I'd say, if you can avoid it in any way, do not charge the computer, it MIGHT cause a problem, so why give yourself the grief if you can avoid it.

Rather, borrow the money from a friend or family or buy a used one or something. Once you stop making payments on your cards, maybe you can pay cash? In my case, stopping payments on my cards has freed up quite a bit of cash. So much so that I wonder if I'll be able to convince a judge I can't afford to pay. But when running the numbers with the expense calculator linked in the sticky, it seems I am left with nothing after using standard deductions which seem pretty close to what we really spend...

[JRScott]

If you reaffirmed an unsecured debt that might raise a flag with the trustee.

Now from what you are saying you bought the computer 2 months ago? Have you filed bankruptcy yet?

Okay what I would advise is that you wait at least until it is more than 90 days from the computer purchase date before filing bankruptcy. The reason for this is that if such a purchase is within 90 days it falls upon you to prove it was not fraudulent. If it is outside the 90 days then it falls upon the creditor to prove that it was fraud, which is much much harder to do. So if you haven't filed then I'd wait. From what you've said you use it for school, and I assume that was a somewhat necessary purchase as many schools today do expect students to have computer access, which might help your case in beating a fraud allegation but might not.

If you have filed this is certainly grounds for the credit card holder to perhaps seek to have the automatic stay lifted. Just because they can doesn't mean they will. And they may or may not object before the 341 meeting.

Good Luck, if you've not filed wait is my advice.