Are my spending habits or history of transactions reviewed?

Are my spending habits or history of transactions reviewed before I can be approved for a bankruptcy? I have been really careless and buying things for my apartment instead of paying bills and it wouldn’t be hard to see that I could have afforded to pay my credit card bill every month. Is there a penalty for this or will I just not be approved?


One Comment

  1. It is usually the creditor and not the trustee that will examine your purchases. Any items that are considered “luxury” items within the past 90 days from the bankruptcy filing could be considered non-dischargeable. Luxury items could include vacations, expensive cosmetics, car, excessive clothes. Outside of 90 days, the creditor could argue fraud. The creditor would have to prove that when you purchased these items, you had no intention of paying on the credit card. The burden of proof is on the creditor and it’s difficult to prove. In my career, I have filed over 1,2000 cases. Only in a handful of cases (maybe 4), did creditor object. In one case, the debtor made car repairs of $1,800 within 90 days of the bankruptcy filing. In another case, the debtor paid her employer $6k before she filed. In both cases, the debt was non-dischargeable and debtor had to pay the creditor back without interest.

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