Question about J.C. Penney credit card used last in November

[kellysmum]

My husband and I are filing jointly ch. 7-probably papers will be filed by the end of January. I have a J.C. Penney credit card with G.E. Retail Bank with approximately $7,000 in charges. I know this sounds terrible, but my mother always paid this card-has for years and years. There's no way my DH and I could afford the $400 a month payments. I just figured she would go on paying it as she always did. Back in October, I charged over $1000 to this account for clothing, household goods, a hairdryer, and a straightening iron, figuring my mother would pay the bill when it came in November. The last time I used the card was the first week of November for $16.00.

Problem is, my mother fell on hard economic times and couldn't pay even the minimum. I did not charge the items with the intent to declare bankruptcy; I honestly figured my mother would pay as she always had. So now we're taking our paperwork to our attorney's secretary on Tuesday to go over so she can type up the forms that will be filed with the bankruptcy court. The attorney said G.E. Retail Bank would not be concerned about the $1,000. I'm worried about the appearance of fraud or the appearance of intent to commit fraud. Can anyone please advise? Thanks.

[LadyInTheRed]

Your attorney is right.

Don't let the word "fraud" scare you. If you used the card for $500 or more in luxury purchases and G.E. decides to object to the discharge of the debt, then there is a presumption that the debt is non-dischargeable and you would have to prove otherwise in order to have the debt discharged. In the unlikely even that G.E. did object to discharge, it would only mean that you would have to pay that particular debt. It doesn't affect the rest of your case.

[justbroke]

I would not be concerned either! First, they are not going to go crazy over $1,000 and it's obviously for "non-luxury" items.

[EandGWZ]

I'm not a lawyer but I'd wait 90 days from last charge. If your last charge was 11/7/12 you're talking about waiting 1 week into Feb to file. I'm new here and not a lawyer but I've heard the 90 day rule over and over again.

[keepmine]

I'm not a lawyer but I'd wait 90 days from last charge. If your last charge was 11/7/12 you're talking about waiting 1 week into Feb to file. I'm new here and not a lawyer but I've heard the 90 day rule over and over again.

The exception is, for non luxury purchases. I doubt the OP has any worries about filing in Jan.

[btbeme]

No worries. GE Retail is pretty busy trying to keep their own head above water and will not make a fuss over this.

And, yes, the 90 day rule is a very good one to follow for anything questionable. It is not an absolute though - a creditor can pursue something significantly older than 90 days if they feel they can prove fraud. But, clothing (unless you dress like Cher) and food are pretty much allowable reasonable expenses. The 90 day rule kinda acts as a "cutoff" for things that you might have to explain in detail.

[lillymarlene]

I accidentally used a credit card for gas and groceries about 30 days before filing. After I realized I wasn't supposed to do that, I was kind of "sweating it out." But, nothing ever came of it.

[justbroke]

I accidentally used one that I thought I could keep... AFTER I had submitted my petition and for about 15 days thereafter! Ooops! No complaints, but I would not try that!