Avoiding Luxury Expenses before Bankruptcy
When a person is thinking about filing for bankruptcy, it is important for them to know if there are any debts that will not be eligible to be discharged, or erased. Some people believe that, if they are planning on filing for bankruptcy anyways, they can make purchases with their credit card that will be forgiven when they do file for bankruptcy. However, this isn’t the case if these purchases are deemed to be a “luxury expense”.
If you’re considering filing for bankruptcy as a way out of debt, we may be able to help you avoid some serious mistakes before filing. For more information, contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.
What Counts as a Luxury Expense?
A luxury expense included in a credit card bill usually can’t be discharged like many other debts can. In many cases, bankruptcy courts may deem that any non-necessity counts as a luxury expense, and therefore an individual filing for bankruptcy will be required to pay off these debts even after they go through the bankruptcy process.
The following are commonly viewed as luxury expenses in bankruptcy filings:
- Unneeded home furnishings
- Unnecessary appliances
- Unnecessary vehicles
- Excessive clothing or food purchases
- Electronics not needed for work
An experienced bankruptcy attorney may be able to help you avoid common bankruptcy pitfalls like raking up luxury expenses, allowing your bankruptcy filing to go by as quickly and smoothly as possible.
If you are suffering under the heavy weight of unmanageable debt, it may be time to consider bankruptcy. To learn more about how to prepare for this debt solution, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.