Recent Credit Card Charges

If you made charges of over $550.00 with any creditor be it credit card debt, cash advances or personal loans and the charges were for luxury items within 90 days before filing for bankruptcy the law presumes that you intended to file for bankruptcy when you made the charges and did not intend to pay the creditor. All those charges will not be discharged unless you can argue that the charges were reasonably necessary. An experiences bankruptcy lawyer can help you to argue these charges in court.

Recent Cash Advances

If you took out a cash advance of more than $825.00 within the last 70 days before filing of bankruptcy make sure you consult a lawyer to avoid the presumption of fraud. For further information see Bankruptcy Code Section 523 (a) (C)(i)(I)(II)

Luxury Items

Luxury items are goods that were the bankruptcy courts considers inappropriate in light of the debtors individual financial situation including expensive cars, expensive car payments, vacations, expensive restaurant visits etc.

Beware of selling things before you file

Certain types of transfers of your property to certain people can jeopardize your bankruptcy. The trustee may have the right to take the property you have sold or given to others before you filed for bankruptcy. The bankruptcy trustee will look at all transfers you have made within one year before you filed for bankruptcy. Before you sell any property you should consider a few important rules.

1. Accurately report all your transactions to the bankruptcy court on your statement of financial affairs which is part of the petitions for bankruptcy.
2. If you sell property you must sell it for its fair market value. Underpricing your property creates the suspicion that you are trying to shelter your property and plan to buy it back after the bankruptcy.
3. You must be prepared to account for the money you received from the sale of your property.
4. Do not make last minute transfers or purchases.
5. Do not change the form the property is held. Most trustees regard this as fraudulent activity
6. Do not sell non-exempt property to buy exempt property if you have no reasonable use for the exempt property.

What is transfer?

Transfer includes the sale of real and personal property, pledging your home for a loan, giving a right of way or easement on your real property, or exchanging property.