subtleT
kiwifarms.net
- Joined
- Sep 5, 2019
With Phil officially declaring bankruptcy, would this spending not be considered fraud? I'm really unfamiliar with the whole process, but if he intends to not payoff his CC debts, he would still be liable to pay for these microtransactions if they exceed a certain amount. This is just a random article on Luxury Items and Bankruptcy:dsp in the top 25 for a "spend mtx for prizes" event
I think it's more important now to try and keep track of this, then we can hopefully match it up to his finances when they're made public
spending for this event would be 15-16 Jan 2020
View attachment 1101710
Credit Card Charges for Luxury Items
"The presumptive fraud rule prevents a debtor from discharging credit card purchases from one creditor for luxury items made within 90 days of a bankruptcy filing if the total amount of those charges is greater than $725. (This figure is accurate for cases filed between April 1, 2019, and March 31, 2022.)
Any lavish purchases made on credit during the 90 days before the bankruptcy filing are presumed to be fraudulent. The creditor doesn’t have to present evidence to the court that there was no intent to pay at the time that the purchases were made to prove fraud. As long as the debtor made the purchases in the 90-day period, the creditor need only file an adversary proceeding (lawsuit in the bankruptcy court called a complaint to determine dischargeability).
While it is technically the creditor's burden to show that the purchases were for luxury items, you are often stuck with the debt unless you can convince the court that the purchases were not for luxury items. If you challenge the creditor’s characterization of a particular charge as a luxury item, the judge will make the determination after a trial on the matter."