Bankruptcy doesn't have to be something bad.
It can actually be the start of something good.
Your situation is unique, and it's personal.
Your attorney should be as well.

What Are the Dangers of Luxury Spending before Bankruptcy?

As Americans are faced with advertising for a vast array of consumer goods on a daily basis, it can be hard for a person to resist buying unnecessary luxury items, even if they cannot afford to do so. In part, this is why credit card debt is such a serious issue. However, if a person spends money on these types of luxury items before filing for bankruptcy, they can be penalized by the courts for this sort of spending.

If you’ve been thinking about filing for bankruptcy, we may be able to help you prepare for the process and better understand what to expect from the courts. For more information about what you can and can’t do before bankruptcy, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, today by calling (205) 324-4000.

What’s Considered a Luxury?

Before the court allows someone to file for bankruptcy, their recent spending record may be closely scrutinized. As a result, any debt taken out on luxury expenses within a certain period of time before the person files may not be dischargeable. The following may be considered luxury items:

  • Electronics
  • Excessive or extravagant clothing
  • An unnecessary vehicle
  • Unnecessary home furnishings
  • Make-up and other cosmetic expenses
  • Vacations

If a person tries to get credit card debt that includes these expenses discharged, the courts may not allow the action. The person may be required to pay this debt off without bankruptcy’s benefits.

Contact Us

If your debts have grown to an uncontrollable level and you need help returning to financial freedom, we may be able to help you throughout the bankruptcy process. To learn more about the process and what pitfalls to avoid, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today.


"When I had my power cut off because I just didn't have the money to pay the power bill, a friend suggested I call Paula Greenway. From the moment I walked in her office I felt like a burden was lifted from my shoulders."
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"I would just like to say that I was impressed by the staff of Greenway Bankruptcy Law, LLC and their attention to professionalism. They made the bankruptcy process not only pleasant but simple."
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I can't tell how comforting it is to know your attorney is working on your case. I would and have recommended their service to friend and associates."Ed H.
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Greenway Bankruptcy Law, LLC
505 20th St N #1220
Birmingham, AL, 35203
Phone: (205) 324-4000
Tuscaloosa: (205) 737-3350
Gadsden: (256) 467-6650

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Greenway Bankruptcy Law, LLC All rights reserved. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. The following language is required pursuant to Rule 7.2, Alabama Rules of Professional Conduct. No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Greenway Bankruptcy Law, LLC 505 20th St N #1220, Birmingham, AL, 35203 | Phone Number: (205) 324-4000