Furniture rentals and payday loans

[PinkTinker78]

I have a friend that is going to be filing chapter 7 soon. Today she called me and said she is going to go out and rack up a bunch of payday loans and find a bunch of furniture to rent from one of those rent to own places and then include it all on her chapter 7. Now I don't really think this is a good idea and I was trying to talk her out of doing it. Is there some kind of rule as far as how old the credit can be before including it in bankruptcy. Wouldn't they think this was done intentionaly when they see the dates.

[OhioFiler]

It's commonly referred to as fraud and is generally discouraged.

[lovebirds]

Those loans will not be discharged and the rented furniture will be taken as soon as she stops paying on it (since it is rented).

Also, her bankruptcy could be dismissed and she will be out all of the court/filing fees.

[Bell30656]

Generally a bad idea. It's one thing to have a payday loan that you haven't paid on in XX months or furniture that was financed and you stop paying on it but a whole new kettle of fish when you take it out just before filing.

Tell your "friend" that fraud never goes well in court. Sure many get away with it but do you, I mean he/she really want to be the example?


I'm too small to bust rocks. I have no artistic ability so painting license plates is out... That only leaves doing Bubba's laundry... I think I'll avoid prison.

[JustOverBroke]

This story has all the makings of an ugly ending.

[frogger]

If she does, she'll meet karma. She's a real b-itch.

[PinkTinker78]

I advised her not to do it and I was actually really shocked that she even talked to me about it. I've rented from a furniture place in the past and if your one day late they are knocking at your door. I've been through chapter 7 before and I can remember my attorney asking me about any new credit accounts. I emailed her and told her about this website and all the good information on here. Hopefully she will take my advice and the responses I got on this post into consideration because I don't think she is going to get away with doing it. It might just be a hard lesson learned for her and one of those I told you so situations.

[Pizza]

I have a friend that is going to be filing chapter 7 soon. Today she called me and said she is going to go out and rack up a bunch of payday loans and find a bunch of furniture to rent from one of those rent to own places and then include it all on her chapter 7. Now I don't really think this is a good idea and I was trying to talk her out of doing it. Is there some kind of rule as far as how old the credit can be before including it in bankruptcy. Wouldn't they think this was done intentionaly when they see the dates.

What?? That's not only fraud but it serves no purpose - rent to own and include in the BK? What's the reasoning there? She will owe the money when they fight and easily win an objection, AND she'll lose the furniture. Very, very poor judgment.

I'm glad you talked to her, she'll thank you when the case proceeds.

[banca rotta]

I advised her not to do it and I was actually really shocked that she even talked to me about it. I've rented from a furniture place in the past and if your one day late they are knocking at your door. I've been through chapter 7 before and I can remember my attorney asking me about any new credit accounts. I emailed her and told her about this website and all the good information on here. Hopefully she will take my advice and the responses I got on this post into consideration because I don't think she is going to get away with doing it. It might just be a hard lesson learned for her and one of those I told you so situations.

Since everyone else gave very good answers there's no need for me to say the same thing.

I was just going to suggest that if she happens to go through with it, that either you or her post the outcome here (which probably won't be very good) so others that want to do the same thing will learn from her mistake.

[liz417]

I know someone that did that RIGHT before they filed ch 7 (about 10 years ago), she ran up/maxed out ALL her credit cards and took those "checks" that the credit card companies send you, and "paid cash" for a Toyota Tercel. Guess what?? She JUST FINSIHED PAYING SOME OF THOSE CREDITORS BACK LAST YEAR! Although, she was allowed to continue her bk, there were some creditor objections and she had to pay back some of the debt!

The other posters have advised you well and as another posters said, "Karma's a B*tch!"

[debtprison]

I have a friend that is going to be filing chapter 7 soon. Today she called me and said she is going to go out and rack up a bunch of payday loans and find a bunch of furniture to rent from one of those rent to own places and then include it all on her chapter 7. Now I don't really think this is a good idea and I was trying to talk her out of doing it. Is there some kind of rule as far as how old the credit can be before including it in bankruptcy. Wouldn't they think this was done intentionaly when they see the dates.

This is outright fraud. Tell her there is a good chance she will go to jail.