What Can You Safely Purchase Right Before or During a Bankruptcy?

If you’re going through a bankruptcy, you may be under the false impression that any debt you incur will be wiped away. That’s not the case, especially if you’re filing Chapter 13 and reorganizing your debt. If you do decide to go on a spending spree either right before or during your bankruptcy, the court is not likely to look on it favorably. Making any large purchases, especially if you do not need what you buy, can derail your bankruptcy. However, there are some things you can purchase during your bankruptcy without any negative effects.

Food, Clothing, and Other Necessities

You can certainly continue to buy any necessities you need to survive. This includes groceries, clothing, gas, and anything else necessary. If it’s necessary to maintain your life, your home, or your ability to earn income, the court will likely not question it. If you need to spend money to repair your home or vehicle, even if it’s a lot of money, that will also usually be acceptable. If you ever have any doubt, you can always ask your bankruptcy attorney.

Be Careful with Large Purchases

Large purchases may come under some scrutiny, so do be careful with making them. However, if you can show that you need to make the purchase in order to maintain your livelihood or job, the court may not have any problem with it. For example, if your car breaks down and cannot be easily or affordably repaired, you may have to buy a new one in order to get to work. This would likely be an allowable purchase that would not cause trouble with your bankruptcy. However, anything that could be considered a luxury purchase will raise questions, so be certain you can justify the purchase.

Always Run Big Purchases by a Lawyer

To be safe, always discuss any major purchase with your bankruptcy lawyer. They understand the finer points of bankruptcy law and will be able to advise you on how the court is likely to view each purchase. If you are in need of help with your bankruptcy, Michael F. Kanzer & Associates are here to assist you. Call today to request a free consultation.

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