Do you think buying a computer would be considered a luxury item?

[downwardspiral]

We desperately need a new PC. Ours is 8 years old and dying.

We found a great one for $900.

We'll be using cash to pay for this (from our refund) do you think that will be an issue?

[Cali]

I guess it would depend on what it is being used for.

[soleprop]

i would think it falls under household exemption. you kinda have to have a computer these days...but this is just my personal opinion.

[joab]

As long as you're able to articulate why it's necessary, you should be fine. For example, if you have kids who need it for school assignments, that's a great reason that no trustee is likely to dispute. But I would look a little harder for a good deal: unless you NEED heavy-duty 3d graphics to play the latest hottest computer games, a $600 PC should be able to handle just about any household task.

IRL, unless things are really slow the day of your 341, the issue probably won't even come up unless you mention it. The trustee isn't likely to bat an eye unless you spent more than necessary to meet your needs; put it on credit just before filing; or used credit for other stuff that the tax refund could have gone to instead of a new computer.

[sunshine mary]

I think the definition of luxury item is different for everyone...I wouldn't consider a computer a luxury item but someone else may. And what stage of bankruptcy are you in? Have you filed already? If not you have to list it as personal property and if it falls under your exemption you would be ok...I would think.

[Phillymanhere]

No, buying a computer is not a luxury for most folks these days. In my job as a teacher, I have to have a home computer with internet service ... it's not optional ...
good luck ....

[downwardspiral]

I think the definition of luxury item is different for everyone...I wouldn't consider a computer a luxury item but someone else may. And what stage of bankruptcy are you in? Have you filed already? If not you have to list it as personal property and if it falls under your exemption you would be ok...I would think.

I haven't filed yet. I just met with one attorney this morning. I'll be meeting with two more before I choose one.

[justplaintired]

If you are like us and have kids you need that computer. My kids use the computer for school and for play, ofcourse to the trustee it's for school, ofcourse for us, it's for play.

To me and this family a computer is a necessity. So, just be prepared to explain if it comes up why you purchased a computer. How about you use it to budget now since you've learnt the hard way a good budget is the only way you can survive. See a computer is definitely a necessity!

[HHM]

It kinda depends on how much you spend. Keep in mind, it is only de facto fraud if you spend more than $500 within 90 days of filing BK. You can actually get a fairly adequate system for around that much. If you purchase the computer and wait more than 90 days, (and assuming you spend only about $400-$800) you won't have anything to worry about.

[JRScott]

Do you use the computer for business or school. If not the trustee may look at is a luxury item. It is likely he'll ask where your refund money went.

As HHM says though keep the figure as low as you can.

[lrprn]

BTW, enjoyed your blog, HHM! Tried to leave a comment but anonymous posts are blocked. Will stop by periodically to see what you've been up to. Thanks for sharing the link!

[deafbroke]

I consider a computer a neccessity. I use it to pay some bills online and transfer money from savings to checking.
I think as long as you don't ho buying a $5,000 computer you should be fine.

DB

[Cali]

I would consider it a necessity only if it was used for work or school.

[Keebler]

We desperately need a new PC. Ours is 8 years old and dying.

We found a great one for $900.

We'll be using cash to pay for this (from our refund) do you think that will be an issue?

You can buy a very nice computer for under the $600 cap on luxury items. I'm fond of getting excellent deals through Dell's Outlet store on the Internet. The outlet store sells only computers and monitors are sold seperately. You could easily buy a computer under the $600 threshold of scrutiny and use your existing monitor for for days or weeks. In a seperate transaction, go out and get yourself a $300 LCD monitor, if you like, and you'll have a very nice system.

If you need more advice on buying an economical computer, I have lots of personal experience and I'd be happy to try to help.

[sunshine mary]

Your paying cash for it so as long as it's "exempt" when you file I would go for it.