Debts incurred for the purchase of luxury goods or services, may not be dischargeable in your Oklahoma bankruptcy case. The bankruptcy code does not specifically define the term “luxury good or service”. However, the code provides that it only includes goods or services reasonably necessary for the support or maintenance of the filer. Actual determinations regarding whether debts have been incurred for the purchase for luxury good and services will depend on the individual facts and circumstances, reviewed on a case by case basis. If filing for bankruptcy incurred debt of $500.00 or more for the purchase of luxuries, those debts are not dischargeable. Further, the creditor must receive return payment in full.
Luxury Goods Purchase Limits after Bankruptcy
Since 2005, the allowing amount of debts on the purchase of luxury goods and services has decreased. Prior to the 2005 Act, the limitation was $1,225.00 within sixty (60) days of the bankruptcy petition filing. Under the new code, the limitation is $500.00 within ninety (90) days of the bankruptcy petition. For details contact our experienced Oklahoma bankruptcy attorneys today.