Fun in the Summer Time

“Consumer debts owed to a single creditor and aggregating more than $675(*) for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable”

With this simple paragraph, Congress outlawed the formerly time honored tradition of going on one last huge blow out fling just before filing for Bankruptcy.  It is consistent with many portions of the current bankruptcy code which seek to draw a line between the honest, but unfortunate debtor, and people just trying to game the system.

Of course, going on one last vacation is a desire that proceeds from the false assumption that having filed for Bankruptcy, you will never get to go on vacation again.  That is simply not true.

The moral to the story is this, if you are in financial distress, the very last thing you should do is spend money under the assumption that your life, as you know it, is about to end.  The thing you should do is see a Bankruptcy Attorney to learn about your options and rights under the law, take control of your finances by studying and understanding them, and plot a new course for success.  You will be able to go on vacation again so long as the stress of avoiding the reality of your financial problems doesn’t kill you sooner.

This article is written by an attorney at Attorney Donald Wyatt PC. Always consult an attorney before making any legal decisions. To make an appointment today, please click here to contact us.