Capital Communications Federal Credit Union v. Crowson (In Re Crowson)

**Capital Communications Federal Credit Union v. Crowson** This case involved a dispute between Capital Communications Federal Credit Union and an employee (Crowson) who had filed for bankruptcy. The employee had made an $800 charge for a timeshare upgrade shortly before filing for bankruptcy, and the credit union argued that this debt should not be wiped out through the bankruptcy process. The bankruptcy court ruled in favor of the credit union. The court found that the $800 timeshare upgrade qualified as a "luxury good" under bankruptcy law, and since it was purchased within 90 days of filing for bankruptcy, the employee could not discharge (eliminate) this debt through bankruptcy proceedings. This means Crowson would still owe the money even after bankruptcy. **What this means for workers:** This ruling serves as an important reminder that not all debts can be eliminated through bankruptcy. If you're considering bankruptcy, be very careful about making purchases in the months beforehand, especially for non-essential items like vacation upgrades, expensive electronics, or luxury services. Courts may view these as luxury purchases that you'll still be required to pay back even after your bankruptcy is complete. Always consult with a bankruptcy attorney before filing to understand which debts can and cannot be discharged.