In re Swanson, (Bkrtcy.N.D.Iowa)

December 17, 2008: Discharge - Credit counseling services that debtor purchased with credit card were not "luxury" services.

While items that a Chapter 7 debtor purchased with a credit card over a thirteen-day period immediately proceeding her consultation with and retention of a bankruptcy attorney, consisting of clothing, shoes, books, beads and household items, might generally be considered necessary items, the fact that debtor spent more than $3,200 on such items over a period of just thirteen days, at time when she was experiencing financial difficulties, was sufficient to make the purchases excessive, and to trigger the statutory presumption of nondischargeability for a debtor's eve-of-bankruptcy purchases of "luxury goods." However, credit counseling services that the debtor purchased with her credit card were not in the nature of "luxury" services.