Legal Question in Bankruptcy in Maryland

Re: Bankruptcy

The answer to that question depends on WHEN you file the bankruptcy petition, and WHO the credit card is with. For example, American Express is very agressive. My suggestion would be to make payments on that debt for at least six months before you filed the bankruptcy. Ideally you would wait a year. Or you could file, but arrange with that credit card company to "reaffirm" that debt, if they have a policy which allows that. When you do a balance transfer you are inducing a credit card company to extend credit to you, with the understanding that you have an ability to pay it. If you file a bankruptcy right away, it is possible that the credit card company will file an action to have that debt declared nondischargeable. Also, some of the bankruptcy trustees will ask to see your credit card statements going back a year and they would not like such a transfer, especially if you own a home that you are trying to protect. Of course, there is always the possibility that you could file and nothing would happen.

Carolyn G. Krohn

60 West Street

Annapolis, MD 21401

(410)280-5000

Re: Bankruptcy

What you are suggesting is fraud. It would render the debt non-dischargeable. There could also be criminal consequences. It could also be treated as a preferential or fraudulent transfer to or for the benefit of your wife that could make her liable for the debt (to the trustee). Do not do this. While (as with any crime) you might get away with it, it is illegal and not worth the risk.