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I can't tell if this guy is trying to scare me or is telling the truth?


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I cant tell if this guy is trying to scare me or he is telling the truth....here is the conversation below.

I am really trying to get a rock solid clear answer. thx!

__________________________________________________________________________

Q1: can i pay my health insurance or med bills with a cc w/o it being a lux Exp if am forced to file BK later?

credit is perfect but cash flow is really bad and i am afraid to lose my health insurance with all my medical bills so i am looking at options and trying to get the best info.

thanks so much for your wisdom,

A1: Health insurance and medical are necessary expenses, just keep it under 1k per transation.

Q2: ill is Just over $1000 for my insurance...and i cant pay only part of it. on the insurance site? will this still be considered a luxury item? now i dont know what to do... thanks by the way

A2: How long is this $just over a thousand payment good for, a month of coverage or longer?

What are you going to do when the next bill comes due?

Have you stopped paying your dischargeable debts? If you didn't pay the cards, would you be able to make the insurance payment?

It sounds like you've reached the point where you realize a bankruptcy is inevitable. Further charges from this point are under fraudulent pretenses.

Whether or not the charge meets the criteria for an automatic presumption of insolvency or is beyond the automatic presumption period and requires the creditor to have the burden of proof doesn't really matter.

The charge is still wrong and you should not make it if you have any other possible option. Try to find another way, since this is likely the last time a credit card will be available to bail you out of this bad situation.

If you do end up making the charge, put as much time as possible between the charge and your filing. You need to get beyond the automatic presumption period so they weigh the possibility of collecting against legal costs. At absolute bare minimum you need three months -- are you going to need the protection of the automatic stay prior to November?

Q3: I have not reached a point of any decisions, I am looking at options with no decision made and trying to research about about what is smart as well as legal. I appreciate smart legal accurate information.

for instance I don't understand the difference of the the over 1000 dollars, if i used it for medical bills or ins,is it a luxery expense or not?

this is best info i can find. but i find it confusing as an answer to my original question (see below)

thank you for your valuable time and accurate information in a confusing example.

if ( showRev ) { document.write("

© for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $1,000 for "luxury goods or services" incurred by an individual debtor on or within 60 days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 60 days before the order for relief under this title, are presumed to be nondischargeable; "luxury goods or services" do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act;

") }

©

(i) for purposes of subparagraph (A)--

(I) consumer debts owed to a single creditor and aggregating more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and

(II) cash advances aggregating more than $750 [document.write("$"+adj523a2Cii$)$825] that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable; and

(ii) for purposes of this subparagraph--

(I) the terms "consumer", "credit", and "open end credit plan" have the same meanings as in section 103 of the Truth in Lending Act; and

(II) the term "luxury goods or services" does not include goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor.

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