Question regarding purchases before bankruptcy

So, my husband and I are considering filing bankruptcy. Our car was recently repossessed and sold off, we're behind on rent, and we both owe various people money- only 1 credit card, but we also owe cell phone company, gym membership is saying we owe them (I paid for the months I used, but they are suing for full amount), and I'm about to be sued for a debt relating to school (it's not a student loan, but another school debt).

I read something online about not being able to file if you have purchased "luxury goods" in the past 90 days. Does that mean if I have bought anything that's not a necessity (like paid for our internet or bought some shoes) then I can't file for bankruptcy? Or does that mean that if I used a credit card to pay for it than I can't file? We have paid cash for everything the past year- we have not used credit cards at all, but since my husband is not working, I just had a baby, and the 3 of us are living on my $39,000, we do not have any money to catch-up on the bills.

Paying for shoes or internet service are almost necessities. Luxury items would be considered big ticket items like trips and appliances....or a big screened TV.

Hey soap lady is that only if you paid for the stuff on credit? I have took any trips but had to buy a new TV back in feb because one went out but it is paid for.

Yes, that BK provision pertains to luxury goods bought on credit that aggregate more than $500 incurred within 90 days of the bankruptcy.

If you paid cash, then that doesn't apply. Although if you did purchase a big-ticket item with cash, you might have to list it as an asset - but then I'm sure you could use your state's exemption to exempt it.

I wouldn't worry at all. Even if you did purchase luxury goods within 90 days, you can still file your BK. The worst case scenario is that the creditor objects to dischargeablility, wins, and you have to end up paying the creditor back for those goods. (Most credit cards are not even going to send their attorney in to object to dischargeability).

Personally, I've had customers take out a $1000 loan and file bankruptcy before their first payment was due. My attorney said it would be too difficult to prove the loan proceeds were used on luxury goods, and that the legal expenses in trying to fight it would outweigh the amount owed, so it wasn't feasible for us to even try to make an argument in court.

Thanks for the reply debt cruncher

What's the best way to find a good bankruptcy attorney?

Talk to friends for recommendations...use the line "a friend" is looking for a bk attorney.

Like anyone who knows me wouldn't see through that in a hot minute! I'll probably ask around, discretely, though. Thanks!

Another question- LOL: To file chapter 7, you have to make less than the median income in your state, right? I'm in VA, and I tried finding out what the median income is, and I can't get a reliable figure. Is there a website online that would help? My income is just under 40K/year and we're a family of 3.