Holiday Debt &

Bankruptcy

HOW TO

DEAL WITH

Emile Harmon

During the holidays you might be tempted to

overspend especially on your credit card.

If you are facing the possibility of filing for

bankruptcy, consider the following…

First, your credit card spending.

The Bankruptcy Code states that if an individual incurred more than 600 dollars on “luxury

goods” (clothing, electronics, etc) within ninety days of your bankruptcy filing, then these debts

will not be dismissed.

First, your credit card spending.

Next, the merchandise you spent money on.

The items you buy with your card must be considered luxury purchases. The Bankruptcy Code does not define what exactly this type of item is,

but if your purchase benefits the health and welfare of your family then it will most likely not be

considered a luxury item.

Next, the merchandise you spent money on.

Lastly, your cash advances.

Lastly, your cash advances.

The Bankruptcy Code also includes cash advances similarly to how they view purchasing luxury goods that amount more than 600 dollars. The individual is still accountable for any cash advance within 70

days of filing.

Take all of these into consideration when facing the possibility of filing on top of credit card debt.