is it okay to make large purchase (urgent)

[suljaga13]

I like to thak you guys in advance
I made a purchase of $539.00 in department store through their credit card 1 day before due date.
I was current on my bills till that day . And is passed 4 months now and I ' m thinking about filing for chapter seven along with my $15,000.00 unsecured cc.
I was just wondering if they can dissalow my bankruptgy for that doing.
I don't really understnd that 90 day rule.
Is it before you stop making payments or before you file for Bank.

Any advice is Welcome
thank you in advance.

[HHM]

On a side note, $15K is not an unmanagable amount of debt to be filing a chapter 7 over.

What else is going on?

[suljaga13]

thank you for your reply
i also have around $ 7,000.oo in secured department store card debt
\Live with fioence , have 3 year old daughter and another one coming in 2 months.so you figure
I only make $1,700 a month and disposable income based on means test that my lawyer did is only $13.00
I also listed my fionce as dependant in my tax return /she doesnot work.
But lawyer said she gets to keep all her stuff.
Is that true?

[SamanthaJones]

Deleted by mod - insulting to other member

(Deleted by mod - insulting to other member)
Why don't you call the credit cards and tell them you can't pay them? maybe they will cut you a deal, or maybe not, but I would suggest also your debt is awful small to file bankrutpcty over. Anyway- if you have nothing that is non exempt from being taken, no reason for you to do anything, since they won't be able to take anything from you.

[SamanthaJones]

Seriously, though-

If you file a BK you want it to be worth your while, and maximize the benefits in order to mitigate the bad side. (Incredibly, a friend of mine filed CH7 in 2005 in order to discharge less than $3000 in credit card debt. Think about THAT one!).

[HHM]

Anyway, to answer your first question, that size purchase $539.00 will not be a problem. They don't disallow your whole BK based on charges, worst case scenario is you might have to pay back the $539, but the rest of your debts get discharged.

First off, have you stopped paying your credit card payments.

Second, you need to work out a budget, to answer the question, can you meet your living expenses if you did not have your credit card payments. If you cannot meet your living expenses, even if you had no debt, bankruptcy WILL NOT solve your problem. And if your take home is only $1,700 and you have a non-working spouse and 1 kid, with one on the way, I doubt you earn enough money to support that family without incurring more debt after your BK.

You need to view BK as a one time shot to get back to neutral and start again. But I suspect that given your income and expenses, something is going to have to give. The hard fact is, you have income and expenses, you can either reduce your expenses or increase your income. Sounds like you have been using credit to meet your expenses because you don't have enough income, if you can't change that ratio, you will back in over your head in debt within a year or two after your BK, and then you will not have BK as an option.

Also, what was the $7000.00 charge for that is secured, and when did you purchase it.

[aa06a47]

I would definatly try and wait to file until after the child is born. You might have alot of medical debts if you don't have good insurance you can throw in on it.

To some, 15k is a small amount, but given the income your claiming (I guessing around 24K or less per year) I'm sure your total debt of 22K (about a years salary) is not managable, especially since I'm sure your interest rate is pretty high. You are definatly a candidate for filing.

Just my two cents thrown in there....

[HHM]

I would definatly try and wait to file until after the child is born. You might have alot of medical debts if you don't have good insurance you can throw in on it.

To some, 15k is a small amount, but given the income your claiming (I guessing around 24K or less per year) I'm sure your total debt of 22K (about a years salary) is not managable, especially since I'm sure your interest rate is pretty high. You are definatly a candidate for filing.

Just my two cents thrown in there....

I concur, wait until well after the child is born to file.

You will have time. Creditors are very slow to sue. You can typically go for easily 9 months to 2 years or more before an unsecured creditor decides to file suit. And usually by then, the debt is in the hands of a collection agency or 3rd party debt buyer.

[bige1030]

I like to thak you guys in advance
I made a purchase of $539.00 in department store through their credit card 1 day before due date.
I was current on my bills till that day . And is passed 4 months now and I ' m thinking about filing for chapter seven along with my $15,000.00 unsecured cc.
I was just wondering if they can dissalow my bankruptgy for that doing.
I don't really understnd that 90 day rule.
Is it before you stop making payments or before you file for Bank.

Any advice is Welcome
thank you in advance.

The 90 days in the rule are the 90 days before filing. So you should be okay in that regard. But of course, the 90 day rule is this: purchases for luxury goods or services of $500 or more as to one creditor within the 90 days before filing are presumed nondischargeable. The only thing that goes away when the time elapses is the presumption of nondischargeability. If a creditor can prove fraud, though, they can still ask the court to declare your debt to them nondischargeable.

As far as whether they will try to prove fraud, I'm not sure. It seems like other forum members have had good luck (and no objections) by waiting for 6 months after their most recent large charges.