One of the most common myths or misconceptions about the bankruptcy process is that an individual can eliminate or discharge any kind of debt, no matter what it is. Because of this myth, some people may try to exploit the system by making a large number of luxurious purchases on their credit cards before filing for bankruptcy because they believe it will eventually be forgiven. Unfortunately, this isn’t the case with luxurious expenses, and individuals may find that such purchases may harm their bankruptcy case.
If you or someone you know is facing financial difficulties and is considering filing for bankruptcy, it is important that you understand what debts can and cannot be discharged. To discuss your legal options with a qualified attorney, contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, today at 414-377-0518 and take control of your future.
What is a Luxury Expense?
Unlike other debts, luxury credit card expenses cannot be forgiven by simply filing for bankruptcy. Typically, non-essential or necessity items qualify as luxury goods and will therefore have to be paid off. Some common items that may be considered luxury expenses include the following:
- Designer clothing purchases
- Excessive home furnishing costs
- Expensive automobiles
- Other motor vehicles such as motorcycles or all-terrain vehicles
- Electronics that aren’t necessary for your job
If you are considering bankruptcy, it is important to talk to an experienced bankruptcy attorney to better understand the process and make sure that you do not accidentally damage your chances of achieving financial freedom.
For more information about filing for bankruptcy to get out of debt, as well as avoiding common bankruptcy pitfalls, contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, today at 414-377-0518.