Did you have a luxurious Christmas?
Before you laugh, you might want to consider the Bankruptcy Code definition of luxury purchases.
That would be more than $550 for luxury goods or services incurred within 90 days of filing a bankruptcy case. Alternatively, it can include cash advances aggregating $825 or more within 70 days of a bankruptcy filing.
“Luxury goods” would include most Christmas purchases, which are typically not necessary for anyone’s support or maintenance.
The bottom line is that non-essential credit card debt to any one creditor totaling $550 or made within 90 days of filing, or cash advances aggregating $825 are presumed non-dischargeable.
Which may mean that Christmas revelers might have to wait a while to file a case with the bankruptcy court.
By Doug Beaton