- NEW!
by Henrymaid on December 16th, 2008
Yes and, No. Recent changes in Bankruptcy laws state that major ticket purchases bought on a credit card within the past 6 months to a year may not be forgive. This is to prevent people from exploiting the old bankruptcy laws where people would charge up cards knowing they had no assets and were planning on doing bankruptcy.
Having said that while a car is probably out of the question jewelry may slip through if enough time passes. If you bought it within a year of filing bankruptcy it may get detected when laywers look at your debt and purchase history but 2 or 3 years it may slide through. Credit cards are signature loans and therefore the lender has to eat the debt if the borrower defaults.
by Someguy on December 15th, 2008
If the judge or the credit card rep. notices a lot of spending close to the BK date, they might ask you to return the property if it is possible. For the most part, the person will get away with it.
by Account Closed on December 15th, 2008
If you file bankruptcy and then get a credit card and charge items on it, those debts will not be forgiven. You see when you file you do so with a lawyer which handles what is taken off and which is not before you go to court. once you file with the lawyer no new items can be added. And all new items are a whole new ball game. In order for something to be forgiven it has to be listed when you file. Someone trying to add new items will be questioned in court as to how they can afford to buy something so expensive when they are wanting to file bankruptcy. Chances are they will not allow the bankruptcy to go through.
by SoDifficult on December 15th, 2008
If it is on a credit card, it would be hard for the bank to know that you bought a diamond. Legally, if you have something worth value (car, diamond, home, art), then the court appointed trustee can take those items, turn them into cash, and use those monies to pay off debt. When you file a bankruptcy, you must list all items of value, and a total estimated resale value of all personal belongings.
So, yes. If the court knows you have a diamond that is worth taking the time to sell, they will sell it. From what I hear, most of the time when someone files BK, the total debt far exceeds property values, so they rarely confiscate personal belongings, excluding homes and cars.
by EmptyWallet on July 5th, 2009
Like one person said, not during bankruptcy. No company would even give you a card.
Before bankruptcy? Yes you CAN do "Some" things.
Buying groceries is OK as long as the amount is small ($50-$100) And this can be either using CC or cash.
Some though, go too far. One guy got a loan for $2K 93 days before his BK. Trustee (They use judges if there's a disagreement between you and the trustee)
asked him what it was for. he said.
"Since I was going bankrupt, I thought I could grab some cash before I filed"
Yes, he was made to pay it back!!
by davisbeauty on January 3rd, 2009
Sometimes you cannot add to a Bkrty any debt acquired 60 days prior to filing it. Even then, they will ask what the worth is of everything you own (guns, jewelry, furniture even). It's a very long list... And they will ask you to forfeit or sell some items. I don't think that is a good idea.
by Little_Piggy on December 16th, 2008
Usually if a person files for bankruptcy all assets are taken into account - so the hyperthetical diamonds could be seized by the court and sold to pay the debts.
by Chris the other white meat on December 16th, 2008
Depends on what kind of Bankruptcy you qualify for.
by Anonymous on December 15th, 2008
Nope, no bankruptcy judge will forgive anyone a care free spender.
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You're reading Hypothetical: If one were to file bankruptcy can they get a credit card and charge something like a car or a diamond on it and then have that loan forgiven and still keep that?
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Comments
thats good that people can't do that. Thanks for the info
by Jane on December 16th, 2008