Opinion ID: 720706
Heading Depth: 3
Heading Rank: 1

Heading: The length of time between the charges made and the filing of bankruptcy;

Text: 29 2. Whether or not an attorney has been consulted concerning the filing of bankruptcy before the charges were made; 30 3. The number of charges made; 31 4. The amount of the charges;5. The financial condition of the debtor at the time the charges are made; 32 6. Whether the charges were above the credit limit of the account; 33 7. Whether the debtor made multiple charges on the same day; 34 8. Whether or not the debtor was employed; 35 9. The debtor's prospects for employment; 36 10. Financial sophistication of the debtor; 37 11. Whether there was a sudden change in the debtor's buying habits; and 38 12. Whether the purchases were made for luxuries or necessities. 39 In re Dougherty, 84 B.R. at 657 (citing In re Faulk, 69 B.R. 743, 757 (Bankr.N.D.Ind.1986)). Under this approach, the bankruptcy court must consider these factors to determine whether the debt was incurred through actual fraud, i.e., where the debtor made the charges with no intention of paying for the goods or services. In re Dougherty, 84 B.R. at 657. 40 In adopting this twelve factor test for credit card cases, the Bankruptcy Appellate Panel in Dougherty acknowledged the inadequacies of both the implied representation theory and the assumption of the risk theory. Id. at 656-57. Since Dougherty, other courts have also rejected the assumption of the risk and implied representation theories and have followed the twelve factor test. 4 However, Dougherty has also been criticized because it does not consider all of the common law elements of fraud, particularly, misrepresentation and reliance. 5 41