The case involved a debtor, a Mrs. C. (names were often anonymized), who had filed for bankruptcy to escape a mountain of unpaid bills. Among the expenses listed in her schedule were a significant number of charges for clothing—specifically, silk dresses, beaded evening gowns, and elaborate hats.
The trustee overseeing her case objected. He argued that Mrs. C. had run up these debts with no reasonable expectation of paying them back, and more pointedly, that the items themselves were She was a homemaker, not a diplomat or a stage actress. A simple wool dress would keep her warm. A silk one with a train? That was a luxury.
From a sustainability perspective, most of our dress orders are frivolous. The average garment is worn only 7 times before being discarded. A “frivolous” dress in 1887 was a silk gown you wore for years. A “frivolous” dress today is a $15 fast-fashion polyester slip you wear once for an Instagram photo and then send to a landfill, where it will outlive your great-grandchildren.
Under the U.S. Bankruptcy Code, Section 523(a)(2)(C) creates a presumption of fraud for any “luxury goods” or services totaling more than $725 (adjusted for inflation) bought on a credit card within 90 days of filing for bankruptcy. While the law doesn’t define “luxury goods,” legal precedent consistently points back to that 1887 case. A winter coat? Necessary. A set of designer stilettos? Potentially frivolous. A bespoke suit for a job interview? Necessary. A velvet smoking jacket for lounging? Frivolous.
