Risk of Purchasing Luxury Expenses before Filing for Bankruptcy
It can be tempting for people who are planning to file for bankruptcy to make substantial purchases with on credit soon before filing for bankruptcy with the expectation that the debts will be discharged. Creditors and bankruptcy trustees may view these luxury expenses as suspicious, especially if they were made shortly before pursuing debt forgiveness. If a bankruptcy court classifies a purchase as a luxury expense, the applicant may be required to pay for the product after filing for bankruptcy.
Times of financial hardship can be extremely stressful. When you find yourself in a position such that you can no longer make payments on existing debts, it is important that you consult with a bankruptcy attorney before making purchases that could potentially interfere with your case. Contact the Raleigh bankruptcy lawyers of the Bradford Law Offices, at (919) 758-8879.
Examples of Luxury Expenses
In most cases, luxury expenses are not discharged through Chapter 7 bankruptcy. Typically, luxury expenses are those that are not necessary for daily life. Some examples of these include:
- Additional houses or real estate
- Secondary or high-value automobiles
- Other vehicles like boats or ATVs
- Expensive dinners
- Designer clothing or jewelry
To learn more about how luxury items are treated in bankruptcy cases, contact an experienced and dedicated bankruptcy attorney today.
At the Bradford Law Offices, we are dedicated to helping our clients to identify and pursue the right path forward for their unique situation. For assistance seeking an end to the strain that your unbearable debt load has created, contact our Raleigh Chapter 7 bankruptcy attorneys by calling (919) 758-8879 today.