Potential Fraud?

[Indebted]

I have a former business partner that had asked me to transfer some small business unsecured credit accounts (they were still personally guaranteed accounts, however), into my name to help them out We attempted to, which required the creditor's standard credit check process, but the creditor denied it afterwards. Later on, the creditor gave in and stated that they would do such, as long as I signed a promissory note. Why they didn't offer this option from the getgo, I don't know.

If I went ahead and did this, and eventually filed bankruptcy, whether immediate or later, would that be considered fraud, or do you think it would be legit?

[debtmonster]

RUN! Do NOT walk from this deal.

[Indebted]

RUN! Do NOT walk from this deal.

Thank you for your reply. I understand your concern, trust me, and so do I. I guess I still would like for my question to be answered in a manner that allowed me to understand the potential implications of doing such, and ultimately filing bankruptcy.

[debtmonster]

Jail time isn't worth it! The toilets are nasty to sit on and the food is gross. Trust me. You don't want to go there.

[justbroke]

As mentioned, you should not get involved in this at all. Forget run... run far far away and change all your phone numbers.

[dingdong]

Peronally, I would never want to do something that may raise the eyebrows of any trustee. You can bet the creditor will bring up the issue if you file BK and you might possibly have your BK dismissed.

Why risk a fresh start?

Why would you want to take on anyone's debt?

What is the trade off?

Tell your friend that they need to seek an alternative solution, you are risking your one shot at BK, then you may not be able to file for quite some time.

If you are transferring this debt to your name because you are considering filing BK and think you can help your former partner by including his debt in your BK, you will most likely get slammed by the creditor and the Trustee.

It won't be pretty

[AngelinaCat]

If you are transferring this debt to your name because you are considering filing BK and think you can help your former partner by including his debt in your BK, you will most likely get slammed by the creditor and the Trustee.

It won't be pretty

And it will be expensive. Adversary Proceedings are not usually covered in your legal fees, and the attorney will charge extra for dealing with one.

[justbroke]

I have a former business partner that had asked me to transfer some small business unsecured credit accounts (they were still personally guaranteed accounts, however), into my name to help them out

I just read this again. If you're filing bankruptcy anytime soon, not only would this transfer be fraudulent, it has all aspects of "insider" with it! I wouldn't touch this with a ten foot pole.

Now, if you're not insolvent, and not expecting to file Bankruptcy anytime soon... and you are looking at this as an investment opportunity to own a portion of that business... check with a financial consultant first.

I think the normal one year insider lookback wouldn't even matter, if you and your partners intentionally moved the debt around so that you could discharge it in a Bankruptcy or otherwise hinder collection.

This has trouble written all over it. I'm guessing that your "former" business partner is going to pay you some "fee" to do this. This makes it even worse in my book.

[AngelinaCatHub]

OMG do you call this guy your 'friend'??

BK Court is a very kind Court and if you are up and up, it goes rather smoothly. There is no 90 day wait for fraud and they can look back a very long and unpleasant way. A promissory note is just that. You promised to pay another guy's debt. When discovered and it will be, the bk Court can actually pursue Criminal violations. You get no gain time in Fed prison. Those who advised you above my post are not wrong nor am I, and I do not have to be a lawyer to see that this looks, acts, and quacks like the fraud duck that it is. As stated above, change friends. 'Hub

[MSbklawyer]

Jail time isn't worth it! The toilets are nasty to sit on and the food is gross. Trust me. You don't want to go there.

You sound as though you speak from experience? ;)

[Calthius]

You mentioned that this is business debt and that it is a former business partner. Is the business going under? What are the circumstances? Are you going to be filing bankruptcy? Are you on the personal guarantee that you mentioned for the small business debt? Were you a partner and have you dissolved the partnership?

And what kind of company was/is it in form of. LLC, partnership, C-Corp?