Lay-a-ways

[Clover329]

I am in the process of filing Chpt 7. I have not signed the papers yet as my lawyer is still working through what I gave them.

My question is... 2 weeks ago, I put 50% cash down on a new mattress. It is on lay-a-way at the store until I pay it off and move to a new city in August. When I did it, I wasn't thinking about my BK. Should I cancel the lay-away until after I have filed and everything has gone through? I don't think the store reports lay-a-way on your credit since they don't have my SSN or BDay, just my Driver's License number. Should I mention this to my lawyer? Or will it be ok?

[dingdong]

I always looked at lay away as a kind of "item on hold" transactiion.

The store can't sell the item until after a certain time period, and you usually pay a small fee for the courtesy, correct?

But it isn't an extension of credit. And you can always change your mind, with only the loss of the lay away fee.

If you paid off the item and then brought it back the next day for return, you would get your money back.


Is it a large amount of money?

Would it be considered a luxury purchase, I am not sure.

Ask your lawyer.

If you don't have a mattress or your current one is severely damaged, then the expense may be allowed.

It probably depends on the cost of the mattress. If it was a 2000.00 mattress, I would say wait until after the BK.

[Clover329]

The mattress is $1218 including 2 pillows (which I already have), a mattress pad, delivery & tax. I put $600 down and owe $618. I am going to make monthly payments until August when I need it. I will be moving to Boston for school and will need one since the one I use now will be staying with my beau in CT.

I didn't have to pay a layaway fee or anything. And I can change my mind and cancel it (except the pillows) anytime. I just emailed my lawyer to ask him. I'm waiting for a response.

I wouldn't think they would consider it a luxury since without it, I'd be sleeping on the floor or in my sleeping bag when I move. We'll see what my lawyer says. Hopefully it will be ok.

I always looked at lay away as a kind of "item on hold" transactiion.

The store can't sell the item until after a certain time period, and you usually pay a small fee for the courtesy, correct?

But it isn't an extension of credit. And you can always change your mind, with only the loss of the lay away fee.

If you paid off the item and then brought it back the next day for return, you would get your money back.


Is it a large amount of money?

Would it be considered a luxury purchase, I am not sure.

Ask your lawyer.

If you don't have a mattress or your current one is severely damaged, then the expense may be allowed.

It probably depends on the cost of the mattress. If it was a 2000.00 mattress, I would say wait until after the BK.