Can I spend $4,000 on a bed before filing bankruptcy?

Yes, but I can’t imagine why.

Under Utah law, I can exempt (or protect) your beds and bedding, without regard to value.  In theory, this means that you could have a $100,000 bed, and you would not lose that bed or have to sell it if we filed bankruptcy.  I assume that a trustee would argue that this $100,000 bed was an abuse of the exemptions and try to sell it, and I have no idea what would happen.  bed

I was asked today if you could buy a bed right before filing bankruptcy, and if $4,000 was too much to spend.  No, but it sounds like a lot of money to me unless the bed is one of those hospital lift beds which some people need as their health declines.  Utah law not only lets me protect beds and bedding, but there is a separate exemption which protects medical equipment (like the lift bed or oxygen tanks, or walkers, or a motorized scooter, etc).

The bigger question for me is how you pay for it.  If you use your tax refund to purchase a bed, then we are okay.  This is a safe purchase of an exempt item prior to filing bankruptcy.  If you finance the bed, we’d better plan on reaffirming the bed (signing an agreement that you will pay the balance with the same payments and interest rate).  If we don’t reaffirm the debt, there is a very tiny chance that the secured bed lender will argue bad faith and argue that we still have to pay the bed balance back in spite of the bankruptcy.


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