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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Will I jeopardize my bankruptcy filing if I make charges on

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Will I jeopardize my bankruptcy filing if I make charges on my credit card?
I recently saw a bankruptcy lawyer. He thinks I should probaby file a Chapter 13 bankruptcy in 2 or 3 months and I may well do so.
I need a laptop computer for my business. It will cost about $400. If I pay for it on my American Express and subsequently file for bankruptcy will I jeopardize my ability to file? Als, thic card currently has automatic payments for internet service and insurance on it and I usually use it for groceries and gas. Will gorcery and gas charges jeopardize my ability to file? Will charging my health insurance look bad as well?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

None of the charges you described will jeopardize your ability to file. It it could be determined that you were planning on filing a Bankruptcy when you made the charges, those particular charges would not be discharged, but the rest of the Bankruptcy would proceed as if you had not made those charges.

If the debtor charges $600 or more on luxury items (including a laptop) within the 90 days before the Bankruptcy is filed, it is presumed that the debtor intended to file a Bankruptcy. Bankruptcy Stat. 523(2)(C)(i)(1).

I think this is what you wanted to know. If not, please let me know.

Thank you!

Edited by cfortunato on 12/3/2010 at 11:30 PM EST
cfortunato and other Bankruptcy Law Specialists are ready to help you
Expert:  cfortunato replied 6 years ago.

Thank you for accepting my answer!

I just wanted to clarify: for the presumption to apply, you would have to charge $600 or more per creditor, not $600 altogether.

Customer: replied 6 years ago.