2007-02-06 07:14:37 · 6 answers · asked by ice_dragon2001 1 in Business & Finance ➔ Credit
Leaving the one person debt free, and having the other person file bankruptcy?
2007-02-06 07:16:09 · update #1
Fraud don't do it. You like jail? Go for it.
2007-02-08 03:24:37 · answer #1 · answered by Fantasy Handbook 2 · 0⤊ 0⤋
This sounds a little odd, but if I understand correctly, Person A wants to transfer their credit card balances to Person B, and then Person B files for bankruptcy - I'm assuming Chapter 7 which would essentially discharge the debt.
I'm not a lawyer - but I believe this would not be possible. Person A cannot just "transfer" their credit card debt to Person B, and then Person B files BK to erase the debt.
The laws have changed significantly, making it more difficult to get a bankruptcy discharge, especially a straight discharge of debt in Chapter 7. The court will review financial transactions to make sure nothing untowards has occurred (hiding assets, etc) before granting a BK discharge. That's not a guarantee that Person B will even qualify for Chapter 7; the court may decide conversion to a Chapter 13 is in order, which requires repayment of the debt, although on different terms and may not require full repayment of the debt.
Bottom line: If you're being asked to participate in something like this - don't. If you're struggling under credit card debt and are considering bankruptcy, consult a board-certified BK attorney first before you do anything. BK attorneys can stop creditors in their tracks and help you discharge all that debt. Sure, a BK will tank your credit score, but not forever. And if you're considering BK, odds are your credit score is damaged anyway.
If it's not you and you're looking to 'transfer' your credit card balances to someone else and have them file BK - you can't transfer your credit card balances to someone else's cards.
2007-02-06 07:32:28 · answer #2 · answered by chambermistress 1 · 0⤊ 0⤋
Im sure you can, but if its a huge amount, then they can file a complaint (or adversary proceeding) against you in the bankruptcy court and you will have to repay it or your case will not get discharged. So if you transfer $3,000 3-4 months before you file bankruptcy they can collect it back. So, if you want to transfer it, then do so now, wait a few months and then file bankruptcy. The law says you cannot charge over $1,500 over 3-4 months before you file, or they are allowed to ask for repayment.
Also, the bankruptcy laws have not changed that much. It is based on income and if you have children or not. If you make less than $38,000 and have no children you are eligible to file Ch. 7.
2007-02-06 07:21:32 · answer #3 · answered by Fun N Sun 4 · 0⤊ 0⤋
I think they changed the bankruptcy law which requires you to start paying back that debt. And the way you described does not seem entirely legal, how could you transfer significant credit card debt to someone else, I mean the credit holder agreed to pay those bills.
2007-02-06 07:20:27 · answer #4 · answered by trigunmarksman 6 · 0⤊ 0⤋
That's fraud. Any major additions to debt in the months leading up to filing for bankruptcy can be seen as fraud, or at least not borrowed in good faith, and can be excluded from the discharged debts and you're stuck repaying.
2007-02-06 07:31:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
http://bankruptcy-relief.blogspot.com has good information for dealing with a bankruptcy or trying to prevent one with alternative methods.
http://bankruptcy-relief.blogspot.com
http://loanconsolidation1.blogspot.com
2007-02-06 09:04:54 · answer #6 · answered by Anonymous · 0⤊ 0⤋