Purchases less than 90 days

[chloe0724]

Ok, I have read all the threads on this subject, but still have one more question.

If you purchase items prior to the 90 day mark and file before the 90 day mark hits, can the trustee dismiss your case because of this? Or does it just come down to the creditor disputing it?

It's about 2k worth of things. We had to buy a new couch becuase ours broke (long story) and parts for my husbands car.

Also, we have still been making minimum payments on the card.

Thanks!!

[Flamingo]

It all depends. The best thing to do when one is considering filing BK is to stop using the credit cards at least 3 months prior to filing and realize that the Trustee and/or credit can go back further to six months or more in viewing all your purchases. It's quite possible there will be no issue as to your situation and it's quite possible it will be an issue. Just realize that if one purchases items prior to filing BK, whether it is one large purchase or several purchases during a certain specific time, and you purchased those items with the intention of not paying them back and knowing you were going to file BK in a few months, that is fraud and it's one of the things the trustee and creditors look for and from some postings I have seen, they are not as lenient as they used to be on some of this and are cracking down more and more.

[chloe0724]

So does "cracking Down" mean not letting me file? Or does it mean that I may have to pay back that amount outside the plan?

[Flamingo]

So does "cracking Down" mean not letting me file? Or does it mean that I may have to pay back that amount outside the plan?

By "cracking down" I mean they are looking more frequently than they did before as to fraudulent purchases and that is obvious by some of the recent postings on here. If they suspect fraud, they will check out your purchases going back possibly one year. If there is fraud that can be proven, that is matter that needs to be discussed with one's attorney as to what can or can't be done.

[chloe0724]

I think it's amazing that if you are filing a 13, and you spend a tiny bit on credit cards a few months prior to filing (tiny in comparison to the amount of credit card debt already owed) that they will take the time to fight for 2-3k.

I know that you aren't supposed to use the cards once you have decided to file, but my god. I'm going to be in a 5 year, no frills life because of the 13. What more do they want!!!!!!!!

[Flamingo]

I think it's amazing that if you are filing a 13, and you spend a tiny bit on credit cards a few months prior to filing (tiny in comparison to the amount of credit card debt already owed) that they will take the time to fight for 2-3k.

I know that you aren't supposed to use the cards once you have decided to file, but my god. I'm going to be in a 5 year, no frills life because of the 13. What more do they want!!!!!!!!

Chapter 13 is not a walk in the park; that's why people try to avoid filing. If you successfully get through one, believe me you will not want to do it again and will avoid getting into any financial trouble like the plague. Remember, if you use cards prior to filing, you are using someone else's money to pay for items you have no intention of paying back. When you took on the credit card, you signed a paper stating you would pay them back on purchases made with the card, plus interest on any outstanding balance. My husband and I realized we did not have to sign and accept the credit cards so we put ourselves where we ended up and realized it was not the creditor's fault, but ours. Chapter 13 is an eye opener and will wake anyone up.

[MajorMike]

Exactly Flamingo. The way I read your post, was like..."How dare them do this to me?" YOU did it to you. It's THEIR money, and wouldn't YOU fight for 2-3K if it was yours or someone owed it to you?

[chloe0724]

You're right. I guess I'm just so frustrated. I've been paying on this credit card debt for so many years, that I guess I kinda felt like they owed it to me. I know that's an irrationalw way of thinking.

I am trying so hard to change how I think about things. It's so hard when it's so ingraned. I'm learning, it may be the hard way, but it's still learning.

I am so grateful for you guys here. I need a good slap in the face every once in a while.

[Flamingo]

Exactly Flamingo. The way I read your post, was like..."How dare them do this to me?" YOU did it to you. It's THEIR money, and wouldn't YOU fight for 2-3K if it was yours or someone owed it to you?

LOL! That's it exactly Mike... When times are bad we tend to blame others for things that were basically own own fault or doing...We all learn from mistakes and grow from it.

[MajorMike]

Its ok, Chloe, we're all in this together and it IS frustrating that we charged on these cards and paid all this interest and we got ourselves into a stressful situation. The thing is, we're lucky we have BK laws to help us, because if not, then what? We would be in big trouble. Thank God we get a second chance to start over and hopefully we will learn from it and be more financially responsible. While in a 13, we're saving money and watching our money much more closely then before. Its a definite eye opener and it's not meant to be a walk in the park as Flamingo said.