QUESTION
Can I file for bankruptcy if I pay off my student loans with my cards? How?
Asked on Jun 19th, 2015 on Bankruptcy - Michigan
More details to this question:
If I pay off my student loans over 5 of my credit cards and maxed them out. Can I file for bankruptcy then and not have to pay back the credit card company?
6 ANSWERS
Deborah F. Bowinski
Don't count on it. That would be considered to be fraud, and if the credit card companies object to your discharge they would likely win.
Answered on Jun 22nd, 2015 at 4:11 PM
Nice try, Charlie, but this trick doesn't work with tax debt or student loan debt. What you are proposing is also known as bankruptcy fraud and could send you to jail. Seen the latest episode of Orange is the New Black about life in federal prison. Wonder why they call it a country club prison?
Answered on Jun 19th, 2015 at 5:10 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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That discussion may be fraught with discussions on how to commit fraud.
Answered on Jun 19th, 2015 at 1:05 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It is possible that you could get away with it. However, it sounds very much like one type of bankruptcy fraud, incurring a debt (to the credit card issuers) with the intention of discharging it in bankruptcy. Consult a skilled and ethical bankruptcy lawyer. He or she may be able to come up with lawful means of solving your problem.
Answered on Jun 19th, 2015 at 11:13 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, however you must wait at least 90 days after paying off the student loans.
Answered on Jun 19th, 2015 at 9:37 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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See a bankruptcy attorney. Sounds like a debt incurred in anticipation of bankruptcy.
Answered on Jun 19th, 2015 at 9:33 AM