fraudulent purchase scare

[Anonymous]

So I am scared all over again. So I first became interested in bankruptcy 2 Saturdays ago. I was on the way to purchase jewelry for my birthday. With this new purchase, I am afraid that the lawyers may think this is a fradulant purchase when it is not.  On the way to the store my family member brought the topic of bk up and really made me sper interested. Also I got a card offer for a new card. Since Im trying to lower what I use I opted in for the card. I have not used it at all. I just dont want to seem suspicious. Just my luck I guess.? I just think it is strange that these 2 life events came up right at the time I  am interested in looking into bankruptcy..

[Anonymous]

If you incurred debt of more than $600 within 90 days of filing bankruptcy, you may face challenges that can impact the dischargability of the debt. If the debt was for luxury purposes (e.g. jewelery) it may be presumed to be fraud.

In this situation you have a few options: 

1) Wait at least 90 days to file (I would make a few payments to support your case in the event fraud is claimed anyway)

2) Sell the jewelery back to the store and apply the proceeds to your card (to me, this shows good faith, even if you don't get the full amount back).

Keep in mind that preferential payments (over $600 to a single creditor within 90 days of filling) is also an area to look out for. There may be challenges for making a large payment to one creditor, and not others. If you chose option 2, the large payment (for returning the merchandise) would be justified. In the end, if the payment were challenged, the proceeds would just be re-distributed to your creditors evenly.

Talk to a few attorneys if you decide to file. Ask them for their advice on this. It may be "honest" to return the jewelry, or it may just save hassle and prevent issues by waiting a few months to file.

[Anonymous]

Return the jewelry if they have a 30 day refund policy.

[dragontears]

I mean this in the nicest way but if you are going to file for BK now is not the time to be getting jewelry and applying for new cards....

[Anonymous]

I understand. My whole knowledge of bankruptcy came up when on the way to make a deposit on it. Thats why its so bizarre that when I first, for the first time in my life, buy myself something like jewlery this situation arises. But then again that is how my luck has always presented itself. But correct horrible timing. I think I am just going to pay it for it over time it was fairly inexpensive around 200 dollars.

[Anonymous]

what if I pay it off around 200 and just wait a while. Its already being sized and all. Idk I will make a decision after my next meeting with m attorney.

[pizza1]

Buying jewelry or anything thats isn't food, utilities, gas/rent etc (basically bare living neccesseities)....is considered a luxury in the eyes of the BK court if you did it at least 90 days before filing.

You can file, but then when the trustee gets ahold of your case, and goes over it with a fine tooth comb, and they will, (don't think just filing means "your done"), they see that, and a new card within 90-180 days pre-filing....they could and can dismiss the whole case.

When filing a BK in a federal court...there is no takies-backies. IF your case get "dismissed", it will still stay on all your credit reports but will reflect Dismissed, and will impact you negatively for 10 yrs.

Filing a BK means you're are poor, and can't afford to even live. Buying even $200 jewlrey means in the BK eyes, you're not poor, and that money could have gone to your creditors.

[Anonymous]

I understand. I barely ever buy anything for once I decided to give in and make it feel like I was working to live and not vice versa.  I guess I will have to thnk twice before giving in anymore. I was told by my attorney that I could break the lease.