We recently came back from vacation, using a credit card to book the hotel and so on. We've been thinking of filing chapter 7 and now that the reform bill is clearly going into law I believe now is the time. My question is, can the credit card companies we are planning to list look back and see we just went on vacation and some how stop the process? We charged about $400 for the hotel room, and a little for trinkets. So its not like we knew we were going to do this and maxed out the cards. Its honestly bad timing, but still what should we expect if we file now?
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Filed 09/08/10, $26k unsecured. Plan submitted 09/16/10, $250/mo X 36 Months = $9,000.
First Payment: 09/28/10 341 Hearing: 10/12/10, Confirmation: 10/28/10
2nd debtor education course taken: 02/05/13. DISCHARGE: 10/10/2013. -
Any purchases on cards within the last 90 days are subject to scrutiny. You can explain something like a hotel stay by saying it was a family emergency (seeing sick family, or funeral) but I never recommend lying to a trustee, and hate lying about stuff like that anyway (bas karma). If it was just a cheap hotel stay and a few bucks here and there it shouldn't be a problem if you file 90 days after, but any activity within 90 days of filing is a bad idea. -
Its a small enough amount that it probably won't be a problem, but yes, there is a lock back period, any charges for luxury items (i.e. hotel rooms for vacations) are presumed fraudulent within 60 days prior to filing BK. However, they can go back further, but then they have to prove actual fraud, which is a little more difficult.
However, let me pull a little Suze Orme tough love, if you are really insolvent, what the hell are you doing going on vacation....Comment
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Its hard to explain. We saved some money from our tax refund that we dedicated to the vacation. We used a debit card for the hotel stay, which was paid from the money we set aside for the vacation. So we didn't use a credit card, because we were trying to not go further into debt. People in debt go on vacation all the time, it shouldn't be considered a fraud.Originally posted by HHM
Knowing that the vacation was never paid for on a credit card, would that change your answer a little?
Filed 09/08/10, $26k unsecured. Plan submitted 09/16/10, $250/mo X 36 Months = $9,000.
First Payment: 09/28/10 341 Hearing: 10/12/10, Confirmation: 10/28/10
2nd debtor education course taken: 02/05/13. DISCHARGE: 10/10/2013.Comment
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Yeah, since the room wasn't booked on a credit card, you should be fine. Although, since it will appear on your bank statements, it may raise a red flag anyway. It may just mean that the Trustee will take a closer look at your case.Comment
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Do you think that the trustee really looks at your bank statement? I mean...do they go through each individual charge? I have several withdrawals for cash that I live off of. I bought groceries with that money and clothes? Will the trustee want to know where my cash went?Comment
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