Balance Transfers

[ANGELN]

Does Anybody Know Why The Trustee Wants To Know If You've Transferred Any Balances From One Card To Another? I Don't Know How To Find Out If I Have In The Last 90 Days. I Don't Have Any Bills Dating Back To February,no More Credit Cards And I Can't Access My Accounts Online. I Doubt If The Companies Would Be Very Helpful If I Called Them. Any Info Or Advice Would Be Greatly Appreciated.

[NASCAR20FAN]

Does Anybody Know Why The Trustee Wants To Know If You've Transferred Any Balances From One Card To Another? I Don't Know How To Find Out If I Have In The Last 90 Days. I Don't Have Any Bills Dating Back To February,no More Credit Cards And I Can't Access My Accounts Online. I Doubt If The Companies Would Be Very Helpful If I Called Them. Any Info Or Advice Would Be Greatly Appreciated.

It seems as if they are looking to see if any money has been moved that could be used to pay down you debt. Or maybe they wan to see if you have tried to consolidate your debt before you filed. Either wasy the CC companies should have that information for you.

[anonymuse]

I wish I had an answer--it poses an interesting question. It will be interesting to see how this is handled since technically she did not take on new debt so she wasn't making last minute purchases knowing that she would be able to discharge them in BK, but she did have a new creditor.

[anonymuse]

Here's another post I found in regards to this:

http://www.bankruptcyforum.com/showthread.php?t=3206&highlight=transfer+balance

[SinkingFast]

It seems to me that your attny could request this info from the Creditors on your behalf. It may take a Motion of Discovery to get the info, but I think it can be done. Even if you can't get it yourself, seems like the Court could get it for you.

The Court is looking for large transfers of cash where you possibly may have taken money from one or more CC's and stashed a portion of the $$'s amounts. Discovery of hidden assets, so to speak. Not they think you didn't apply a cash transfer from one CC to another. But that you may have skimmed $$$'s out along the way somehow and hidden it in your mattress or the coffee can at home.

Could also be looking for any large movements of cash within the presumption period as well. Any technically they can find to act as a port in the storm.

[aa06a47]

OK....here is how I understand the rules....most credit card companies consider balance transfers cash advances. However, most courts do not as there is no physical transfer of money to the individual. With that said, the court may consider it a preference payment to a creditor if made within 90 days and get the money back from the creditor that was paid. However, I think it merely becomes part of the pot and not returned to the creditor who doled the money out.

I have read cases where credit card companies fought it and lost. Just do a google search on "balance transfers and bankruptcy" and you should find some cases listed to read.

Since the trustee is asking this, I have a question..do you know if any creditors have filed objections? You might look on Pacer and see. The trustee may be fishing to see if there is a creditor he can squeeze some money out of since this is a chapter 7.