Bankruptcy And Debit Card Purchases.
Here's a question-- when a chapter 7 or a chapter 13 bankruptcy is declared, is there a test to see if purchases are "valid" or if theyu're a sign that the individual isn't truly in need of a discharge? For the purposes of arguement, assume that the purchases don't include any "big ticket" items-- no ferarris, TV's or home entertainment systems are on the ticket, nor any large cash withdrawels. Also, there have been no purchases on credit cards at all since the job loss. I had a collection agency call up and threaten me saying in part that unless it can be directly tied to food or rent by reciept, the BK will be denied. I'm a bit confused about that, since I don't have a receipt for every withdrawel or purchase-- and I knoew people who have done a BK that have continued to purchase things that woudl be considered "luxury"-- for example, the occassional movie with the kids. I'm thinking that it was just an attempt to blow smoke, but I wanted to confirm it.
I may be wrong, but I think the collection agency is full of you-know-what. They will try anything to get you to pay. Don't pay anybody (except if you are going to keep your house, car etc. if you can) who is unsecured, that's what our lawyer told us when we first filed. Only a lawyer can truly tell you what you must do, but remember it's the job of collection agencies to get payment in any way they can. After you have actually filed, you can tell them what you have done and then refer all further inquiries to your lawyer. If you go it alone, you will have to handle all the #%^&* by yourself, whereas a lawyer will take over for you and collectors will listen or else risk a heavy fine. Chapter 7 is for people without much monthly disposable income after paying their necessary expenses. Chapter 13 is for people with disposable income, but not too much debt.
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