If you're thinking about filing for bankruptcy, it's important to know that the Bankruptcy Code has special provisions for credit card purchases of luxury goods and services within 90 days of filing. Luxury items are items that are not considered necessities or general living expenses and may not be able to be included in your bankruptcy discharge. If you buy luxury items on your credit card within 90 days before the date that you file your bankruptcy petition, the credit card company may object to being discharged or wiped out in your bankruptcy. Christmas gifts can be considered luxuries as they are not necessary for you or a general living expense. So be careful on spending on Black Friday or Cyber Monday if you are thinking about filing for bankruptcy.
You will also need to be careful about taking out cash advances on your credit card if you are considering filing for bankruptcy anytime soon. Many people like to pull out some extra cash to have on hand this time of year, especially if they come across something they've been eyeing at a Black Friday sale. Unfortunately, some people are under the impression that if you're planning on filing bankruptcy after the holidays, you can just buy what you want because "it'll get discharged anyway". This isn't true. If you take a cash advance on your credit card within 90 days of your bankruptcy filing, there will be some raised eyebrows and the credit card company may object to being discharged in your bankruptcy.
Do you need to speak with an attorney about possibly filing for bankruptcy before, or after the holidays? Give our office a call at 757-276-6555 to schedule a consultation with our experienced attorney!