filing ch 7

[luvu283]

i am filing chpt 7 bankruptcy , just finished paying off fee's no set day yet for petition signing. I recieved a good commission check this past month and am using it to take a vacation, and used my debit card which is linked to my checking acct to pay for the airfare. Will it cause problems if they see i spent 500 dollars for airfare for myself and husband??

[lrprn]

I recieved a good commission check this past month and am using it to take a vacation...

Are you still ok to file Ch 7 with the 'good' commission check added to your gross income for the last six calendar months look-back total on your Means Test and Schedules?

...and used my debit card which is linked to my checking acct to pay for the airfare.Will it cause problems if they see i spent 500 dollars for airfare for myself and husband??

Since you paid for the ticket using a debit card, it's not credit - you paid your own money like using cash. Just be sure not to use any credit cards or take out any cash advances for the vacation or anything else so close to filing.

Are you taking the vacation before or after you file? I'm asking because if you are taking the vacation before filing and it's an expensive, pricey vacation, then your trustee might question the use of many thousands of dollars to pay for a non-required event right before filing. Or your trustee might not. Depends on the customs in your local bk court.

Your lawyer can give you some insights about what to expect here.

[luvu283]

thank you for responding.. we are still way below income requirments even with it. Our vacation is not a pricey one. We are budgeting 1000 dollars for the whole trip... air/hotel/spending money/food for four nights five days. Its basically just to get away for a bit. We have not used any credit cards for over six months and the vacation is planned for september 13 which most likely will occur before the petition signing.

[aces67]

If you add the commission check to your income for the last 6 months will it show any disposable income leftover?

[lrprn]

.. we are still way below income requirments even with it.

Good news! I'm glad to hear the bonus won't push you into disposable income on the Means Test.

Our vacation is not a pricey one. We are budgeting 1000 dollars for the whole trip... air/hotel/spending money/food for four nights five days. Its basically just to get away for a bit. We have not used any credit cards for over six months and the vacation is planned for september 13 which most likely will occur before the petition signing.

This completely cash expenditure should be fine then. It sounds like you have all your financial ducks in a row for filing. Enjoy your vacation!

[killinstinct]

We did a similar thing prior to filing. We took a family vacation in July, costing only about $1000. We were just under median on the means test. Our attorney assured us there were no worries and to have a good time.