What Are the Dangers of Luxury Spending before Bankruptcy?
As Americans are faced with advertising for a vast array of consumer goods on a daily basis, it can be hard for a person to resist buying unnecessary luxury items, even if they cannot afford to do so. In part, this is why credit card debt is such a serious issue. However, if a person spends money on these types of luxury items before filing for bankruptcy, they can be penalized by the courts for this sort of spending.
If you’ve been thinking about filing for bankruptcy, we may be able to help you prepare for the process and better understand what to expect from the courts. For more information about what you can and can’t do before bankruptcy, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, today by calling (205) 324-4000.
What’s Considered a Luxury?
Before the court allows someone to file for bankruptcy, their recent spending record may be closely scrutinized. As a result, any debt taken out on luxury expenses within a certain period of time before the person files may not be dischargeable. The following may be considered luxury items:
Excessive or extravagant clothing
An unnecessary vehicle
Unnecessary home furnishings
Make-up and other cosmetic expenses
If a person tries to get credit card debt that includes these expenses discharged, the courts may not allow the action. The person may be required to pay this debt off without bankruptcy’s benefits.
If your debts have grown to an uncontrollable level and you need help returning to financial freedom, we may be able to help you throughout the bankruptcy process. To learn more about the process and what pitfalls to avoid, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today.