Can I pay off wife's credit card?

[Blackgoose]

My wife is not filing and not on any of my debt. Can I pay off $5k on a credit card or will the trustee come after that?

[LadyInTheRed]

I believe that would be an insider transfer if done before filing BK. But, you already filed. You shouldn't make any financial moves without talking to your attorney, especially when it sounds like the trustee may be objecting to your eligibility for a Chap 7.

[AngelinaCat]

Yes, the trustee can. Who he/she goes after can be another story. If you pay this card which, isn't even yours, that is a 'preferential payment'. But because it isn't your card or debt, you paying this off for your wife puts it at risk of being a 'preferential INSIDER payment', and the trustee could decide to go after her.

If you aren't filing jointly, and this debt doesn't belong to you, I think you better leave this idea alone.

[AngelinaCat]

I just checked, and yes, you have already filed, so to answer the question--I don't know. You need to talk this over with your attorney, as Lady suggested.

[hmsmith]

I would def check with your attorney, but I can't imagine him/her saying that it would be ok. I do not know your filing history, but if you are filing a 7, and you have this kind of money around to pay your wife's debt, they may assume you can pay off your own debt as well, and then it becomes a ch. 13, or like they mentioned above they may possibly go after your wife. I would def call your attorney.

[HHM]

The First question is, where is the money going to come from?

[AngelinaCat]

The First question is, where is the money going to come from?

Blackgoose had gotten a new job right before filing, and it pays VERY well. The problem is that it is 100% commission, so while he cannot show a pay history, if he has to present a paystub at the 341--and truthfully answer the question: "has anything changed since you filed, and now?", he is between the 'rock and the hard place'.

[Blackgoose]

Blackgoose had gotten a new job right before filing, and it pays VERY well. The problem is that it is 100% commission, so while he cannot show a pay history, if he has to present a paystub at the 341--and truthfully answer the question: "has anything changed since you filed, and now?", he is between the 'rock and the hard place'.

Amen!