Less than three months ago, the debtor used his credit card to pay off his utility bills since his electricity and water were about to be shut off. The total amount was $579.89 since he was several months behind. This will result in ___________.

Question

Quizplus · Accepted Answer

Under §523 of the Bankruptcy Code, debts incurred for necessities, such as utility bills, are generally not considered fraudulent, even if incurred shortly before filing for bankruptcy. This is because they are essential for the debtor's basic living needs, distinguishing them from luxury purchases.

Less Than Three Months Ago, the Debtor Used His Credit