Legal Question in Bankruptcy in Minnesota

times were hard for our family and we didn't want our credit to get bad or out of control- so we were able to do a balance transfer to consolidate debt- but the transfer offer was to my checking account. things were better after this until my husbands hours weren't necesarily cut but now he doesn't pick up extra hours that were allowing us to pay down our debt. So now we are facing the real possibilty of bankruptcy. So now my question is- since that was done-7 months ago (in august) can I still file bankruptcy and have that discharged? I have evidence of all of the transactions i made with that money and its clear where the money went- to other creditors and medical bills.


Asked on 3/14/11, 2:27 pm

1 Answer from Attorneys
David Kelly-952-544-6356 Kelly Law Office

Every case is fact specific, and I would need a lot more facts before I could tell you anything that would have much value.

Big cash advances or balance transfers are a classic problem in bankruptcy cases, especially in Chapter 7. A creditor can object on the basis of fraud if the debtor intended to not pay or had reason to know that he or she would not be able to pay when the debt was incurred.

If you have been making payments on the debt, that helps, because it tends to disprove the idea that you intended to not pay. Also passage of time helps, because the older it is the harder it is to prove that you intended to not pay. The size of the debt involved makes a big difference as well, because if the balance is relatively small the creditor might not be able to afford bothering with it.

You need to go face to face with a competent lawyer concerning this. There's no substitute for actually sitting down with a lawyer and going over it.

Read more
Answered on 3/15/11, 10:23 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Minnesota