Legal Question in Bankruptcy in United States

It depends when you took the cash advance and if you have been making payments since then to the creditor.

Go see a bankruptcy attorney about this. There is a possibility that the bank can file an adversarial case against you within your bankruptcy.

If you took a cash advance of more than $925 with 70 days prior to filing bankruptcy, there's a presumption that the debt is not dischargeable. Therefore, the lender may file an adversary proceeding against you.

Even if more than 70 days have passed, the lender would look at the timing of the cash advance prior to filing bankruptcy; the amount of the cash advance; and whether you had the ability to pay for the cash advance at the time that you got the cash advance. Depending on such circumstances, a creditor could still argue that the debt is not dischargeable.

So you'll just have to see an attorney, as others have stated.

What many of the attorneys are stating are statutory presumptions which may be rebutted by a creditor no matter how long you wait. What you have done is that you have taken unsecured debt and paid off the secured debt on behalf of another. It is very likely that when you file bankruptcy the credit card company that you used will file an adversary proceeding against you. Depending on the amount of money that you advanced you may want to wait up to a year or two prior to the filing of the bankruptcy. But you should certainly consult with an attorney. Good luck!

The other attorneys who have been giving you answers are doing a good job. Your primary concern is the possibility of an objection from the creditor who gave the cash advance. Doing that shortly before filing bankruptcy could be considered fraud. They will allege that you intended to not pay at the time you took the advance.

But I also see another issue that nobody is picking up on. Here in Minnesota the bankruptcy trustee might be after your mother for what we call a fraudulent transfer. The payment of the car loan benefited a relative. It could be treated the same as if you had given the money to your mother. Giving money to a relative before bankruptcy is considered a way to hide the money from creditors, thus the "fraudulent" part. The bankruptcy code looks at fraudulent transfers going back two years, but in Minnesota there is a state law that goes back six years - and here it is kind of a big deal.

This response is for information purposes only, is not legal advice, and does not create an attorney-client relationship, I am a debt relief agency, helping people file for relief under the federal bankruptcy code.