luxury spending

[floridian]

i keep hearing that if you spent a large sum of money months before filing bk, its ok as long as it was spent for necessities....

i spent a large sum of money a year ago when i was in good financial shape... i spent it to pay down an obscene upside down on two motorcycles... i then sold them to get some breathing room...like twenty grand worth of upside down..


if i was asked about the money, hows that going to look... help me out here....what can i do to keep this from looking so bad...

[AngelinaCat]

If those transactions were more than a year before you actually file for BK, you will probably be okay. The usual look-back period is 6 months or 180 days prior to filing. That is why folks are advised not to spend large amounts of money or do cash advances, or any other such thing within that period.

How having said that, there is the off-chance that something in your paperwork will pique the trustee's interest--or you may get a tough one that likes to look further back.

Good luck to you.

PS. Be sure to keep your receipts. If you have lost them, go and see about getting duplicates now.

[AngelinaCatHub]

Mrs. is right, but, warning! If you did this with idea of sticking the creditor afterwords, this can cause you some trouble. I would wait just as long as possible. 'Hub

[floridian]

i used the money to pay off the upside down on the bikes.. then i sold them on ebay and paid off the accounts in full... creditors got all their money in full...i lost my butt, but at the time i thought this plan would help me get out of debt...NOT!

i wish i had taken a cruise instead, har har....

[AngelinaCatHub]

i used the money to pay off the upside down on the bikes.. then i sold them on ebay and paid off the accounts in full... creditors got all there money in full...

That is great. You have no problem. 'Hub