Luxury Expenses in Bankruptcy. Like Golf?
By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).
Updated on October 1, 2025.
Today’s question comes from Liam, who has filed for Chapter 7 bankruptcy and the 341 meeting of creditors is scheduled. The 341 meeting is where the trustee will review the bankruptcy petition and ask the debtor questions. The 341 meeting can be found in Title 11 U.S. Bankruptcy Code §341 – Meetings of Creditors and Equity Security Holders.
Reviewing his bankruptcy petition, Liam realized his expenses related to his golf club membership were excluded. This reminds me of a prior blog post regarding golf and bankruptcy. You can see that blog post below.
Issues with Expenses and the Bankruptcy Petition
In Liam’s case, there are potential issues whether Chapter 7 or Chapter 13 bankruptcy was filed. There is also the issue of the golf membership if there is a pending contract because then that is an unsecured debt that would get wiped out with the bankruptcy. Let’s start first with the Chapter 7 issues.
Filing Chapter 7 Bankruptcy
In Liam’s case, approximately $250 is spent monthly on golf, which is a form of entertainment, and entertainment expenses can be listed on Schedule J (Official Bankruptcy Form 106J- Schedule J: Your Expenses (individuals)). However, if the entertainment expenses are too high, the Chapter 7 bankruptcy trustee could object and force Liam to proceed with a Chapter 13 bankruptcy.
Filing Chapter 13 Bankruptcy
If Liam filed for Chapter 13 bankruptcy, there could still be issues with the standing trustee because the trustee would likely object on the basis that golf is a luxury and not an expense.
The reason the Chapter 13 standing trustee objects is because if that expense is eliminated, then an extra $250 is paid into the bankruptcy plan and towards the creditors. Remember, the trustee’s job is to protect the bankruptcy estate, which means getting as much money as possible for creditors, which is accomplished by pursuing nonexempt assets.
Golf Memberships are Unsecured Debt
The other issue is if a contract is pending with the golf club. For example, I signed a 12-month contract where I am a member. Suppose six months into that contract, I filed for bankruptcy. The remaining balance on that contract with the Golf Club would be considered unsecured debt that would be wiped out with the bankruptcy filing.
However, I found out recently that my contract is now month to month after the initial 12-month contract ended, so in my case, there would be no debt to eliminate from the membership, but the expense would still be an issue.
Moving Forward After the Bankruptcy Petition Has Been Filed
Liam must consult with his attorney on this issue and likely amend the bankruptcy petition. Liam did list the golf cart as an asset on Schedule A/B, which is Official Bankruptcy Form 106 A/B- Schedule A/B: Property (individuals), and depending on the value of the golf cart, it might be exempt. Assets are exempted on Official Bankruptcy Form 106C- Schedule C: The Property You Claim as Exempt (individuals).
Liam’s golf clubs should also have been listed on Schedule A/B and Schedule C. As I wrote in my post about “Golf and Bankruptcy Don’t Mix,” the trustee will likely see the golf cart listed as an asset, leading to additional questions.
Remember that bankruptcy exemptions vary per state. Some states use federal bankruptcy exemptions, while others, like Florida, where I reside, use state exemptions. Some states even allow the option to choose between a state or federal bankruptcy exemption.
You Cannot Use Your Credit Cards Near the Bankruptcy Petition Filing Date
In this case, Liam started paying for his rounds of golf with his checking account instead of his credit card. Rightfully so, he stopped using his credit cards a few months before he filed for bankruptcy, as he should. However, the trustee might see the transactions on his bank account.
In “Golf and Bankruptcy Don’t Mix,” I mentioned the issue of reviewing bank statements to look for any extraordinary expenses that may ring alarms for the bankruptcy trustee. I referenced a couple spending nearly $800 per month dining out. In that case, I had to delay the bankruptcy filing one year to ensure that the expense was no longer in their bank accounts.
Moving forward, this issue has to be brought up to his bankruptcy attorney to avoid any unnecessary complications. There is always the option of amending the bankruptcy petition or converting from Chapter 7 bankruptcy to Chapter 13.
Good luck with your bankruptcy case, Liam, and remember, “drive for show and putt for dough.” However, my favorite golf quote is, “Golf is a good walk spoiled.”
Professor Hernandez is an attorney specializing in consumer finance and debt relief. He is the published author of Consumer Bankruptcy Law (Routledge Publishing) and teaches law and finance courses in both English and Spanish for an international university.
Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.
You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.
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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
Updated initially on January 23, 2025.
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