Muffin Mania (on Bankruptcy and Dessert for Breakfast)

In one of em ubiquitous Online Q&A forums, in which the public questions idle bankruptcy practitioners, a conscientious post was posted pertaining to a particular pre-petition purchase.  (“Pre-petition” refers to before the filing of a bankruptcy petition.)

The issue was whether a bankruptcy debtor should be wary of frivolous or unnecessary spending on the eve of bankruptcy filing. The answer is yes. But on a bankruptcy case-by-case basis, it’s a matter of degree. This bankruptcy debtor’s question concerned a $1000 deposit–made six months before bankruptcy filing–for a cruise. Cruise— as in adventure at sea. The kind of thing where you alternately lounge, eat, lean over the bow and bellow, “I’m King of the World!”, eat, whale-watch, eat, kindle romance, rekindle romance, read a Kindle, and eat. In bankruptcy, $1000 isn’t apt to raise a red flag. In fact, vacationing is good for one’s health; insofar as it cuts costs of co-pays for job-burnout corrective-healthcare, a clear-your-mind cruise saves you money.[1]

San Diego bankruptcy attorney Asaph Abrams discusses purchases made prior to filing bankruptcy.  Like, a Cruise.
Not THAT Kind of Cruise.

The broader point of the Q&A post is the question of consistency of the bankruptcy budget. It’s incumbent upon the bankruptcy debtor to explain any conflict between the bankruptcy petition and her financial records.  In conjunction with filing one’s bankruptcy papers with the court, your San Diego bankruptcy attorney must submit supporting documentation to the chapter 7 or 13 case trustee (or administrator). In the San Diego bankruptcy court, non-business bankruptcy debtors are routinely required to provide (inter alia) just the present month’s transaction history for depository accounts. Yet, the bankruptcy debtor’s older records must be sound; on bankruptcy case-by-case bases, the trustee or other parties may delve further into financial affairs. [2] Thus, if one demonstrates an in-the-red budget that merits bankruptcy debt relief, one’s bankruptcy case is undermined if the financial “hardship” is effected by contemporaneous cruising. This is not to say that the bankruptcy debtor must suffer an austere existence. But, if possible, prior to bankruptcy, it’s best to settle for a ticket to Cruise [3] in lieu of a ticket to cruise.

San Diego Bankruptcy Attorney, Asaph Abrams.  Offering free, no-obligation Chapter 7  and Chapter 13 Bankruptcy consultations in San Diego. Visit us online or call 858-240-6751. E-mail to set an appointment. Also representing Imperial County and Riverside County residents.  Se habla español.

San Diego bankruptcy attorney, Asaph Abrams cites the Department of Justice muffin debacle.
Bankruptcy food for thought.


[1] Solo-practitioner bankruptcy attorneys know this; they’re said to already average a solid 5-days vacation a year.

[2] Obviously, flawless financial management before bankruptcy filing is not reasonably expected (hence the compulsory paternalistically-prescribed Financial Management Course to be completed after bankruptcy filing).  Many a woman & many a man makes money-mistakes; yet a dubious double-standard’s imposed upon the bankruptcy debtor.  The greatest economic errors are the fruit of billion-dollar banks, Wall Street, and oh–whatever your political stance, I suppose it’s safe to say–the United States of America.   The Department of Justice for example, was faulted for extravagant muffin spending.

[3] Presently in theatres, tickets to to Tom Cruise can be had for something called Jack Reacher (circa 2013) as well as Top Gun: an IMAX 3-D Experience (a really wordy re-issue of Top Gun from 1986).  Cruise looks pretty much the same today as he did in Top Gun. However, the flick’s fellow filmmakers fared poorly.  Producer, Don Simpson died decades ago.  Director Tony Scott passed last year of ill cause.  Even worse, co-star Val Kilmer got fat.  And 2nd co-star Anthony Edwards got bald.
Certainly Cruise has some cosmic key to success.  Or at least the secret to longevity, trimness, and full-head-of-hairness. Said secret?  Call it crazy.