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ashlyn816 · Nov 20, 2007, 06:13 PM

Okay, I bought an engagement ring ($3500) on my credit card a month ago, and after careful consideration with my mortgage, personal loan, and credit card debt, I think it is in my best interest to file bankruptcy chapter 13. What will happen to the engagement ring?

Fr_Chuck · Nov 20, 2007, 07:19 PM

It is possible the credit card company will challenge that payment and ask for the ring ot be returned, maybe not, you won't know till the case gets before the judge, see what motions the credit card company makes and so on.

Chapter 13 allows you to make payments on debts at a percentage, I am not sure that it will differ in regard to this debt, depending on what percentage the non secured debtors are paid back at.

But remember just about 3 days ago you asked a similar question but said you had not bought the ring yet, now you said you got it already a month ago ( one question is a lie)

s_cianci · Nov 20, 2007, 07:25 PM

Nothing will happen to the engagement ring. It was purchased with a (presumably) unsecured credit card, so if you default on the debt, then that's that. Also make sure you don't confuse Chapter 13 with Chapter 7, as that's what it actually sounds like you're a candidate for.

JudyKayTee · Nov 23, 2007, 12:59 PM

Originally Posted by ashlyn816

Okay, I bought an engagement ring ($3500) on my credit card a month ago, and after careful consideration with my mortgage, personal loan, and credit card debt, I think it is in my best interest to file bankruptcy chapter 13. What will happen to the engagement ring?

Under Chapter 7 your debts are "erased;" under Chapter 13 there is a repayment schedule. Which are you considering?

You may or may not lose the ring - there is a jewelry exemption; if this is fraud (and I do believe you asked a similar question a few weeks ago) and the credit card company pursues that angle you could have a problem with the bankruptcy.

At any rate this is a question for an Attorney to answer.

Fr_Chuck · Nov 23, 2007, 01:41 PM

Just talked to an attorney Wednesday night and bought up this question,
If you buy it and then file right away, the credit card company can ask for that purchase not be allowed under the exemption. So they can just make you pay for it, in full and allow the credit card company to get a judgement agaist you for it, in spite of a bankruptcy procdure.

JudyKayTee · Nov 23, 2007, 03:00 PM

Originally Posted by Fr_Chuck

Just talked to an attorney Wednesday night and bought up this question,
If you buy it and then file right away, the credit card company can ask for that purchase not be allowed under the exemption. So they can just make you pay for it, in full and allow the credit card company to get a judgement agaist you for it, in spite of a bankruptcy procdure.

Did the Attorney say that any purchases made in ANTICIPATION of bankruptcy are not dischargeable? I think that might be the "rule of thumb."

Fr_Chuck · Nov 23, 2007, 04:23 PM

Yes, there are some "guidelines of a number of months before for cash advances and any large purchases. Also some items bought close will be questioned in court, if the judge feels it was done in a fraud they can be disallowed, and they can even not allow the entire bankrutpcy filing.

JudyKayTee · Nov 24, 2007, 08:15 AM

Originally Posted by Fr_Chuck

Yes, there are some "guidelines of a number of months before for cash advances and any large purchases. Also some items bought close will be questioned in court, if the judge feels it was done in a fraud they can be disallowed, and they can even not allow the entire bankrutpcy filing.

Kind of thought so - the new Bankruptcy guidelines are pretty tough, no longer the easy way out.

Thanks -