In a round about way I used 9000 from BT to pay down my HELOC to zero. Is there a wait period for this kind of activity? It happened 8 months ago, do I need to wait 1 year or am I ok now? The reason I ask is a HELOC is a secured loan and cannot be discharged.
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Eight months is quite good in terms of time. Have you been making regular payments on the cc?My comments are solely based on my opinion. The information and links that I have
posted are provided solely for informational purposes, and do not constitute legal advice -
Yes but stopped all payments in May. So this is not considered inside payment to myself?Comment
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Not something I have heard of.Originally posted by Kansas1960 View Post
As long as you have a few payments under your belt, which you do, I think it should not be an issue. Like everything in BK, nothing is black and white and a lot is left up to chance. That is, will the lender pursue you.
Worse comes to worse they could dispute the transfer and you will have to reaffirm it.My comments are solely based on my opinion. The information and links that I have
posted are provided solely for informational purposes, and do not constitute legal adviceComment
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There will always be some risk, there is no "set" amount of time you can wait to eliminate all risk of an objection in this scenario. The problem may not be with the creditor, but could be with the trustee. What you did increased the assets value (i.e. home equity), you have increased the value of your estate at the expense of one of your creditors (that is a bad thing), and I have seen trustee's unwind these types of transcactions, as you mentioned, it is somewhat like an insider payment to your self. Thus, waiting 1 year is advisable.Comment
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