Legal Question in Bankruptcy in Illinois

Bankruptcy shopping spree

I have a question concerning bankruptcy proceedings and accounting for purchases made within a reasonable amount of time prior to and after proceedings have begun. What result when a party involved or excepts to be involved in a bankruptcy proceeding begins to spend on credit to purchase items to be given as gifts? Of course, the illegality of these purchases seems obvious, but what if he then sells these gifts to other buyers. Presuming the debtor does not disclose to the court what happened to the recently purchased property?


Asked on 12/06/08, 1:00 pm

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Bankruptcy shopping spree

It doesn't really matter WHY it was charged to the credit card, the credit card company will notice that there were charges made shortly before filing and will object to the discharge of those charges, whether or not the debtor discloses it to the court or not. And if the debtor failed to disclose something to the court and someone other than the debtor points it out (ie the credit card company), the consequences can be much worse than whatever it was the debtor was hoping to accomplish would be worth as bankruptcy fraud isn't taken lightly.

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Answered on 12/08/08, 10:30 am


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