Legal Question in Bankruptcy in California

discharge items and Chapter 7

I have come to the decision that I am going to need to file bankruptcy. An old creditor that I don't have the money to pay has filed a suit against me. I qualify for chapter 7 with my student income. I am concerned b/c I recently purchased a computer and a few other items in the last month. I see the law says something about items over $500, and none of my single items are over $500, nor were they purchased in a single transaction. Will these items be dischargeable? How will they be handled i.e., will they have to be returned to the lender?


Asked on 9/30/08, 5:49 pm

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: discharge items and Chapter 7

Recent transactions are definitely an issue as far as dischargeability goes. If the creditor can prove you did not intend or have a reasonable expectation of being able to repay the debt at the time it was incurred, then it can be declared nondischargeable. Moreover, if you purchased it on a store card, like Dell or Circuit City, it is most likely secured anyway and you would have to repay the fair market value of the items if you want to keep them.

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Answered on 9/30/08, 5:54 pm


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