The District Court for the District of South Carolina held that a credit card company did not have to specifically identify luxury goods purchased by a debtor within 90 days of the petition date in order to properly allege that the debtor used her credit card to purchase luxury goods on the eve of her bankruptcy.  Had the credit card company’s allegations been found insufficient under Rule 12(b)(6), they would not have triggered a statutory presumption of nondischargeability against the debtor.  The court found that a party pleading the luxury goods provision of 11 U.S.C. § 523(a)(2)(C) did not have to specify in its complaint the actual luxury goods purchased.  Rather, it was sufficient that the credit card company specifically alleged the amount of five purchases at issue as being over the statutory amount and identified the retailers from which the purchases were made, explaining why those retailers sold luxury goods.  The court reasoned that the complaint stated with particularity the circumstances known to the credit card company from which the “luxury” characterization could be inferred.

Court Allows Section 523(A)(2)(C) Claim Without Identification of Luxury Goods Purchased