Legal Question in Credit and Debt Law in Nebraska

credit card consolidation

I would like to do a balance transfer on a credit card that my mother-in-law is a co-signer on, to another credit card without her being on the card at all. Our business has rec'd numerous offers for balance transfers to other credit cards. The goal is to get my mother-in-laws name off of the account so the credit card co. will not come after her for payment. The debt is completely business debt from my company. Chapter 7 Bancruptcy is in the near future. Would this be considered fraud?


Asked on 1/17/08, 2:09 am

1 Answer from Attorneys
Katherine Owen

Re: credit card consolidation

If you are doing a balance transfer, and then filing a Chapter 7, I presume you then intend to discharge the debt completely (as opposed to reaffirming it voluntarily.) The credit card company could certainly argue in your bankruptcy that you incurred this debt with the actual intent not to repay it, which is fraud. If you intend to reaffirm the debt, this is a non-issue.

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Answered on 1/17/08, 9:38 am


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