Luxury Item Purchase
I am in the beginning stages of Chapter 7, completed the pre-file financial counseling with filing being completed the week after Christmas. I have a rather different situation which I did not mention to my attorney during the initial paperwork session because I didn't even think of it as my debt.
I'll try to make this as short as possible.....my daughter (17) purchased a designer luxury item a few months ago by a lay-away plan, meaning she had to pay in 3 payments. Since she didn't have a checking account in her name, she paid me in cash & I in turn wrote out the checks for the item with the checks post-dated for certain dates each month. Each payment was $603.00 which is over the limit as I understand it. The initial check went through before I even thought of filing bankruptcy with the subsequent checks going through after I had met with the attorney & started the paperwork. I'm afraid this is now going to throw up major red flags to the trustee & I'm not sure what I should do. I want to speak with my attorney about it but he is out of town for the holidays right now.
She is still in possession of the item, with tags still attached. Will they consider this preferential since the checks were cashed & the item paid for in full, even though I wasn't paying some of my regular bills and will they go after the designer to repay or will I just have to turn over the item for them to try to sale with a detailed explanation to the Trustee?
Thanks for any advise!
I'll try to make this as short as possible.....my daughter (17) purchased a designer luxury item a few months ago by a lay-away plan, meaning she had to pay in 3 payments. Since she didn't have a checking account in her name, she paid me in cash & I in turn wrote out the checks for the item with the checks post-dated for certain dates each month. Each payment was $603.00 which is over the limit as I understand it. The initial check went through before I even thought of filing bankruptcy with the subsequent checks going through after I had met with the attorney & started the paperwork. I'm afraid this is now going to throw up major red flags to the trustee & I'm not sure what I should do. I want to speak with my attorney about it but he is out of town for the holidays right now.
She is still in possession of the item, with tags still attached. Will they consider this preferential since the checks were cashed & the item paid for in full, even though I wasn't paying some of my regular bills and will they go after the designer to repay or will I just have to turn over the item for them to try to sale with a detailed explanation to the Trustee?
Thanks for any advise!
Comment