Recent Credit Card Purchases

[destiny62]

I am getting ready to sign my paperwork and send it to my attorney. My attorney states that anything over $1350 in purchases or cash advances within a 60 day period is considered luxury and will not go well in court.

I had charged about $1000 at Best Buy within the past few months and also have spent about $500 at JC Penney. I had not originally planned to include these cards. Can these CC companies try to take back the items bought or will they settle under some other terms? These were purchases I made because I didn't have money otherwise but was not considering bankruptcy at the time. I could certainly pay them back over time, but I don't want to get into any trouble with my case.

Any advice is appreciated.

[HHM]

JC Penny probably wont hassle you, but Best Buy will probably ask for some sort of re-affirmation agreement. Most of the time, the representative of best buy is authorized to settle the account for 50% of the amount owed.

[pdecur]

Is that because the purchases are recent? I too have a Best Buy card in my petition, but have not used it in years.

What happens if you can't afford the 50% offer. I mean the reason I am declaring BK is because I can't afford to live. If I had money to make payments I would have negotiated with them myself.

[HHM]

Yeah, its because it's recent. However, recent purchases are only "presumed" fraudulent if made with 60 days of filing Bk, otherwise, the creditor would have to prove fraud in an adversary proceeding.

The offer is not 50% lump sum, its usually, 50% paid at some monthly payment. So you have $1000 on best buy, you could probably swing a deal of $500 at $50 per month for 10 months.

However, it just depends on what was purchased and when the charge was made relative to your filing BK. If the balance is only $1000, they may not even hassle you.

[pdecur]

Mine were done over a year ago.