Can our creditors see how we spend our money?

We are considering filing for bankruptcy but we are concerned about our spending history. We used my husband’s termination pay for home repairs a vacation and only a little towards our debts. Will creditors be able to see this if we file for bankruptcy ?

One Comment

  1. It depends on the numbers. If you spent $100, 000 on home repairs and vacation and only paid your creditors a minimal amount, this could be a problem and considered a “bad faith” filing. Also depends on how long ago you did this. The longer the better. If it’s within 6 months, it has to be reported as part of your means testing. Outside of this, you have to report it as income in the past two years.

    Section 707(b) of the United States Bankruptcy Code (the ―Code‖)4 allows courts to dismiss a case filed by an individual debtor whose debts are primarily consumer debts if, after notice and a hearing, the court finds that the granting of relief would be an abuse of the debtor filed his petition in bad faith, or where the totality of the circumstances of the debtor‘s financial situation
    demonstrates abuse.

    Really need to discuss with good bankruptcy attorney in your area.

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