Purchased within 90 days?

[novayalife]

If I have some minor purchases on a credit card like gas, groceries, and apparel about 85 days before filing ch 7 will I have any problems? For some reason my attorney never asked me about that? We waited to file after a balance transfer but where never asked about transactions on the card within 90 days. I am scared now reading some of the other posts.

[justbroke]

I don't think you'll have any problems. Items purchased within 90 days of filing are only assumed to be non-dischargeable, if they aggregate (to any single crditor) more than $600 (or so).

If you are buying necessities, this will almost never count against you! Food, gas, apparel, medicine, are necessities.

Besides, the creditor would need to file a complaint (adversary proceeding) in order to get the amount declared non-dischargeable. That in itself costs a minimum of $250 just to file the paperwork, plus legal fees. I would say that most creditors won't bother you under $4K. That's not to say that they won't, but it's more a general view.

Sheesh, I had some purchase right after filing. (Only on one card, then I realized I couldn't keep the card, so stopped immediately. I even made a post-petition payment too.)

[relief13035]

I made purchases 3 weeks before I filed for necessities. Purchases were nothing out of my normal shopping patterns.

Out of the blue, my husband brought up the idea about filing BK one weekend. I was relieved so I made an appointment with attorney on Monday, and we were filed by Friday. I have no idea who I thought I was fooling. I kept thinking I could get out of this debt somehow. You can only juggle funds for so long.

We didn't have any problem at all with the purchases, but I wouldn't advise shopping sprees before filing.

[pookieny]

I thought it was cash advances that they have a problem with within 90 days?

[justbroke]

I thought it was cash advances that they have a problem with within 90 days?

Nope!

It's cash advances as well as purchases for luxury goods or services. This is controlled by 11 USC 523 (Exceptions to Discharge).

Basically, you can't discharge debts owed to a single creditor where you have charges aggregating more than $550 for luxury goods or services. And, you can't discharge debts owed to a single creditor where you have cash advances more than $825 that you incurred within 70 days before filing.

The major contention is on the "luxury goods or services" and jsut what is luxury. It generally means anything that is not necessary for you ore your dependents. For example, a vacation is a luxury, while paying for the dentist or purchasing food, isn't a luxury.

In any event, the creditor still needs to file a complaint (Adversary Proceeding) to Determine Non-Dischargeability which costs money to do, so they don't generally bother for low amounts.