Kentucky Bankruptcy Law

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Post-holidays bankruptcy filing blues

The commercial pull of Christmas can be irresistible. Everyone else seems to be buying nice and pricey gifts for their loved ones. All the pre-teen and teen kids are craving an iPod Touch or some other even more expensive i-Item. The younger kids are inundated with supremely cool and fantastically expensive toys that walk, talk, and otherwise seem to mimic some surreal lifeform. You feel guilty if you do not buy your most significant other something from Jared or perhaps you are fearful that person would feel slighted if they are not receiving something from this fella’s jewelry store. So, you justify just a little more than you had budgeted to buy gifts. We all have done it. But, now that the festivities have ended and the euphoria of gift giving subsided, the financial cost hits. All those little somethings and not so little somethings add up quick.

Because our society has become oriented around the use of credit, most likely you bought many Christmas gifts with VISA, MasterCard, Discover or American Express. You may have known it was inevitable, but you held off taking that dreadful plunge of actually filing bankruptcy. You wanted to make it through Christmas before facing up to the less than jolly music of debt. This is all entirely normal and understandable, though unlikely to be counted as wise. That is because you now have to deal with 11 U.S.C. Section 523(C)(i)(I). Any debt to a single creditor incurred prior ninety (90) days of filing the peition for “luxury goods” cannot be discharged. So, if you wracked up $500.01 dollars in Christmas gifts on your credit card, you may be stuck with that debt whether or not you can make the payments.

This can happen to the most well-meaning folks who just wanted to make sure their loved ones experienced a good Christmas, but intentions do not matter to the creditors; just the money. If you find yourself in this situation, along with countless others, there is no need to despair. It is important to discuss this with your bankruptcy attorney and determine the best course of action. Depending upon your particular situation, it may be wise to hold off filing bankruptcy for a time. Alternatively, you may need to go ahead and file right away if garnishments or foreclosures are looming. Finally, you may be able to pay back that particular debt if you are relieved of others that are to high to ever pay off. At the very least, though, you need to be aware of the potential impact of Christmas gift buying.

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December 30, 2009 - Posted by | Bankruptcy, Uncategorized | , , , , , ,

2 Comments »

  1. […] addressed the same issue of using credit to buy Christas gifts in this post that I addressed here. If you incur a debt with no intention of repaying it, that particular debt may not be discharged […]

    Pingback by Another perspective on post-holiday bankruptcy blues « Kentucky Bankruptcy Law | December 30, 2009 | Reply

  2. […] addressed the same issue of using credit to buy Christas gifts in this post that I addressed here. If you incur a debt with no intention of repaying it, that particular debt may not be discharged […]

    Pingback by Troutman & Napier, PLLC | Another perspective on post-holiday bankruptcy blues | December 8, 2014 | Reply


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