Use CC to pay down Student Loans?

[sunflwrgrl13]

My OH and I were planning on filing Ch7 within the next month or so, however I just thought of something that we could do that could potentially help us out down the road. We both have student loans which are obviously not dischargeable in a BK. However, we have a few credit cards which do not have a balance currently. I was sent some of those balance transfer checks and was considering transferring some of the student loans to the credit cards, and then discharge the cards in the BK. Is this something that is do-able?

I imagine if we did do this, we would not be able to file BK in the next month, we would need to wait another 3-4months?

[mb10240]

I believe the transferred debt would remain non-dischargable, so that's a no-go even if you wait the requisite number of days to file after making the transfer.

[discombob1]

Sorry... I'm not an attorney but I'm pretty sure that would be considered fraud. The Cc company in question will probably come after you and you'll end up paying more down the line due to a possible AP.

[wnguyen]

I asked this question before filing and all of the lawyers told me that if I did that, the charge would be non-dischargeable, set aside fraud.

[HHM]

Bad idea, no matter how you do it.

[backtoschool]

That would be considered bad faith and fraud, and would leave you open to an AP. If your credit card creditor filed an AP, (which they will most likely) then you would have to pay the loans plus your lawyers fees to fight the AP, plus the creditor's lawyers fees. Also, planning to pay non-dischargable debt with a credit card and discharging it, would get the attention of the US Trustee's office, since it looks like you are using your credit card when you know you are going to file bk, which is also considered fraud. This type of action might be grounds for getting your bankruptcy dismissed for bad faith by the US Trustee

[scorpion35]

My OH and I were planning on filing Ch7 within the next month or so, however I just thought of something that we could do that could potentially help us out down the road. We both have student loans which are obviously not dischargeable in a BK. However, we have a few credit cards which do not have a balance currently. I was sent some of those balance transfer checks and was considering transferring some of the student loans to the credit cards, and then discharge the cards in the BK. Is this something that is do-able?

I imagine if we did do this, we would not be able to file BK in the next month, we would need to wait another 3-4months?

do u like playing with fire?u can get burned pretty badly

[keepmine]

The bk specifically makes a transaction like that nondischargeable.
If bk is viable option, your best course of action is to stop using credit cards at once.

http://doney.net/bkcode/11usc0523.htm

(8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for--

(A)

(i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or

(ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or

(B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;

[newbie2]

You really need to stop finding ways to beat the system (so to speak.) If you haven't already done so, please contact an attorney for an evaluation AND legal advise. What you propose to do is foolhardy, and you were already advised in another thread about using a credit card to take care of a debt: http://www.bkforum.com/showthread.ph...501#post457501

[drowning123]

I guess your answer is "HE** NO!"

[AngelinaCatHub]

I guess our host got the message. We did enough out of ignorance to have gotten dismissed several times over. However, it was so obviously due to ignorance, no guidance that our honesty showed through. We finally got our discharge, close, and AP abandoned, but not without unnecessary costs of about 10.5K we sure could have used.

There is NO PROBLEM getting a Chapter 7 bankruptcy IF: 1. you qualify. 2. you reveal all debts and assets. 3. you have NOTHING to hide. The system is fair, but remember it is fair to both sides, debtors and creditors. Doing the right thing always works. 'Hub

[drowning123]

Well said Hub.

[Goteki45]

Bad Idea