What's considered a "big ticket purchase" prior to filing?

[ccmisery]

I have read that big ticket purchases prior to filing can be a red flag, even if you pay cash due to your bank statements showing the amount, for example say I bought something on Ebay and paid via Paypal, bank account shows this record.

My question is, what is considered a big ticket purchase, is $100-$300 considered such? You know, the question well if you had $300 why didn't you pay your credit card bill that is past due?

[justbroke]

It is defined as a purchase of "luxury" goods and is clearly defined in the Bankruptcy code. The portion of the code reads "consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days". So, if you spent $300 on one thing, then $200 on another "luxury" good or service with the same creditor, that could be non-dischargeable. First, "luxury" simply means something that is not for the health and welfare of the debtor or his/her family. In other words, a luxury purchase could be purchasing a Playstation 3 will all the gadgets, where purchasing food, gasoline, or (non-designer) clothing would not be a "luxury" purchase.

As to a question of "would a creditor pursue non-dischargeability for something around $500" is a question for the individual creditor.

If a Trustee decides to closely examine your credit card statements near the time of filing and sees large expenditures, you may, in fact, be questioned about them at the 341 Meeting. I have not heard this happen often, but the Trustee and U.S. Trustee are there to insure that you are deserving of a discharge. They are also making sure you did not make a bunch of "eve of bankruptcy" purchases.

Will a Trustee closely examine your banking and credit statements? It is possible and since you used PayPal and it pulled from your checking account, the Trustee "might" ask about the withdrawal. There's no way to tell if they will. Remember, they are looking for large purchases and withdrawals in general. Primarily to discover hidden assets.

In a nutshell, I can't tell you if the Trustee will see the $300 withdrawal on your checking account statement and probe further.

[ccmisery]

I see, thanks for the info.