Question Chapter 7; Am I doing this right?

[jasmin]

Hi, Could I run my scenario by folks and see what you think? My mom and I have about $60,000 in credit cards. Owe nothing on car or house- they are clear. The house is in her name, car in mine and both of use are on each others bank account and a some credit cards. My plan is to transfer funds off the credit cards we share so they are on cards only in my name. To put my car in her name, and to take her off my accounts and visa versa. I will make the card payments for a 2-3 months more then file for chapter 7. Lawyer said there should be no new activity for three months before I file. The goal is to not have my mom hurt by the bankruptcy, just me. But with the economy tanking and a recent storm which just took of the roof of the garage as well as graduate school I need to pay for I sure could use the $1000.00 a month I am paying out in cards. Could I stop paying before the three months or will this look fraudulant since I have to transfer two bills off her cards and on to one with just me?

[jasmin]

Hi

[boiler704]

removing your mother's name from co-accounts should be okay . . i'm not sure though.

however you can get hit with fraud on transferring the car (anything of value within 2 years) and if you do a balance transfer from cards only in her name onto cards only in your name with the intention of not paying.

[jasmin]

Reply of Chapter 7

I can't afford to lose my car, and I don't want my mother credit ruined.

[ansky0007]

I can't afford to lose my car, and I don't want my mother credit ruined.

How much is the car worth? You are allowed some equity exemptions and you should check to see how much you are allowed in your state. Definately dont sell the car to your mother because they would see it as fraud and go after her to reverse the transaction.

[liz417]

Don't transfer any money around until you speak to your attorney regarding this balance transfer. If your *new* credit cards see that you've transfered $$ right before you file (even if it's 3 months) they may dispute it and you'll get stuck paying them back anyway, or worse, your bk case can be dismissed.

Good Luck!

[jasmin]

The car is worth about $5,ooo. I don't owe on it, I was just going to sign it over to my mom, no $ transaction. Also, I understood that if I had one credit card company transfer $ into my account, and then I used it to pay off another card that that was not as bad. I am willing to kill my credit but I can't have my mom affected to, she has a house which could be affected.

[Cali]

Transferring something to not have it under your name is fraud.

Is your mom joint on your credit cards?

[jasmin]

I have taken my debt of any cards that she is on. My mom has paid numerous debts for me which I can't afford to pay back, plus lots of help with housing expenses which I never cover. I have given her the car in lieu of money which I don't have and can't borrow.

[Tbornetun]

It would still look like fraud. It would look as if you are hiding assets. Are you allowed to use federal exemptions? If so, the wildcard would more than cover your car along with the automobile exemption. I wouldn't transfer anything. You can most likely keep the car. $5000 is not a lot to exempt. You should be fine.