Will recent purchases for medical reasons be included in Ch.7? 21 Answers as of October 29, 2013

I want to file for Bankruptcy asap but I am concerned because I heard that all recent purchases are reviewed for fraud. We bought my handicapped son a jacuzzi tub (for medical purposes) but are wondering if this is going to be an issue. If we have doctors notices will that be ok?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Law Office of Thomas C. Phipps | Thomas C Phipps
It will be up to the trustee to challenge it. I would have as much documentation available as possible.
Answer Applies to: Missouri
Replied: 10/29/2013
Stephens Gourley & Bywater | David A. Stephens
It could be a problem if you purchased it on credit. If you purchased for cash and can prove need, it will probably not be a problem.
Answer Applies to: Nevada
Replied: 9/18/2013
Goldsmith & Guymon
Goldsmith & Guymon | Marjorie Guymon
Unless it was for a necessity there is a presumption that any debt incurred within 90 days of filing bankruptcy is fraudulent. To take away this presumption I recommend waiting 91 days to file and during that period of time make your required monthly payments on that debt.
Answer Applies to: Nevada
Replied: 9/18/2013
A Fresh Start
A Fresh Start | Dorothy G Bunce
It is possible that either the bankruptcy trustee or the creditor could question this purchase for fraud. Whether your justification for the purchase will hold up will be an issue that the bankruptcy judge would have to make.
Answer Applies to: Nevada
Replied: 9/18/2013
Elkington Law
Elkington Law | Sally Elkington
You did not indicate whether you purchased the Jacuzzi tub on a credit card. That would make a big difference. Any purchases on a credit card made within the last 90 days from filing are going to come under a higher scrutiny. The burden of proving that the item purchased was not a luxury item falls on you. You might be able to do that with a declaration from your doctor stating that the purchase was a medical necessity. If you paid cash, then a trustee may have questions about where the funds came from to purchase the item. You should talk to an attorney prior to filing to protect yourself and your assets.
Answer Applies to: California
Replied: 9/17/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Luxury goods purchased within 90 days are nondischargeable. Creditors can object to purchases more than 90 days old. Be prepared to answer how you expected to pay for it. "My son really needed it" will not carry the day. Your creditor does not owe you a hot tub.
    Answer Applies to: New York
    Replied: 9/17/2013
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    It depends. If you bought it knowing you were going to file, that is bankruptcy fraud. Such purchase made within 90 days of filing are presumed to be fraudulent. From 90 days to 180 the presumption is rebuttable. If you file in less than 180 days of purchase you can expect the creditor to complain. Those things are not cheap.
    Answer Applies to: California
    Replied: 9/17/2013
    Law Office of Louis S. Haskell
    Law Office of Louis S. Haskell | Louis Haskell
    I am assuming you charged the Jacuzzi on your credit card. As a general rule, recent charges are a problem when you file bankruptcy. An exception can be made for charges for medical necessities. By definition, "necessities" must be necessary. I do not know your son's condition, so I cannot comment knowledgeably upon the necessity of a Jacuzzi. However, you need to understand that this charge is going to draw considerable scrutiny. I am sure that you can get a note from the doctor saying that it would be a good thing if he had a Jacuzzi for his condition. However, that will not cut it. The doctor will need to explain that a Jacuzzi is necessary, and would do well to explain why it is necessary. It is entirely possible that your son has a condition that requires a Jacuzzi. If that really is the case, the Court may allow it. However, convincing a Judge of that is not going to be easy.
    Answer Applies to: Massachusetts
    Replied: 9/17/2013
    Fears Nachawati | Sean T. Flynn
    The issue with filing chapter 7 is that any debt that was obtained within 180-90 days before filing can be reviewed for fraud or good faith. Meaning did you take out the debt with an intention of paying it back. The fact that the Jacuzzi was purchased for medical reasons is helpful but is may not be enough. Did you make payments on this debt? How long ago did you take it out? Is this a medical necessity? It is important that you discuss all of this with your attorney prior to filing your case.
    Answer Applies to: Texas
    Replied: 9/17/2013
    Stittleburg Law Office
    Stittleburg Law Office | Bernd Stittleburg
    All credit purchases made within 90 days of filing bankruptcy are potentially non-dischargeable. It depends on the facts of the purchase and if there is any fraud involved.
    Answer Applies to: Georgia
    Replied: 9/16/2013
    Armstrong Kellett Bartholow P.C.
    Armstrong Kellett Bartholow P.C. | Gary Armstrong
    Often times it is better to wait before filing to avoid exactly the issue you are talking about. That said, a legitimate medical expense may not trigger the automatic presumption of non-dischargeability. However, even if the automatic presumption is not triggered, that does not mean that the lender won't come after you for fraud. Please discuss this matter in detail with your bankruptcy attorney.
    Answer Applies to: Texas
    Replied: 9/16/2013
    Law Offices of David A. Tilem | Michael Avanesian
    Don't file w/o an attorney. Clear it with whatever attorney you have and it should be ok. We really cannot give a definite answer without knowing everything which is hard (and not recommended) over the internet since you lose privilege.
    Answer Applies to: California
    Replied: 9/17/2013
    Rhymer Law Firm
    Rhymer Law Firm | William Rhymer
    If you purchased it with a non-store credit card, Visa, MC, etc. and you have a doctor's prescription and your child is not an adult, you are probably okay. The worst that would happen is that you might have to pay that amount back to the credit card company and they would set up a payment plan.
    Answer Applies to: Georgia
    Replied: 9/16/2013
    Bordeaux Law, P.C.
    Bordeaux Law, P.C. | Clifford Bordeaux
    Maybe. Sounds like you may have a reasonable explanation for the purchase. However, if the purchase was made on credit and if you are seeking to discharge (not reaffirm) the debt, then it is quite possible that there will be questions about this.
    Answer Applies to: California
    Replied: 9/16/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You really need to sit down with an attorney and get personal legal advice. This forum is a great resource for general information but it is no substitute for good personalized legal counsel.
    Answer Applies to: Colorado
    Replied: 9/17/2013
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Did you finance the Jacuzzi or put it on a credit card? If so, it will definitely not be dischargeable. They will look at it to see if it was truly medically necessary, so I would have a letter from the doctor. They are also likely to look at what you bought i.e. you need it for your son's use, but you bought the top of the line 8 person party model. If you did something like that, I would wait out the 90 day look back period before filing.
    Answer Applies to: Michigan
    Replied: 9/16/2013
    Sanford M. Martin, P.A. | Sanford M. Martin
    All debts must be listed in a Chap 7 bankruptcy.
    Answer Applies to: Florida
    Replied: 9/16/2013
    Danville Law Group | Scott Jordan
    If the jacuzzi is a medical necessity, than it should be safe from a claim of fraud. It will be an issue that the creditor will pursue so you need to be prepared to defend the purchase.
    Answer Applies to: California
    Replied: 9/16/2013
    Law Office of Robert Sisson | Robert Sisson
    Not unless u list them specifically.
    Answer Applies to: Wisconsin
    Replied: 9/17/2013
    Scott Goldstein | Scott Goldstein
    If you can document the medical reason that it is not fraud, you may be able to avoid problems.
    Answer Applies to: New Jersey
    Replied: 9/16/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Regardless of purpose for medical reasons, it is still likely to be considered fraudulent and the creditor can file a motion of nondischargeability.
    Answer Applies to: New York
    Replied: 9/16/2013
Click to View More Answers:
12 3 4 Free Legal QuestionsConnect with a local attorney