Legal Question in Bankruptcy in New York

Not disclosing a debt for chapter 7? (in NY)

I am currently filing Chapter 7. All the paperwork is in, just going for a final signature then to the courts. I have 1 co-signed credit card (CareCredit, $500 limit) . I HAD a $0 balance on it until last month I had to put a cat down. :( (RIP Psycho). I then had to take another one for an infection 2 weeks ago. I now have a balance of $412. I am going to borrow the money to pay it off. I'm hoping to have it paid before the paperwork gets filed. (about 7-10 days). I know I can't spend more than $600 before filing. I would have had the money for it but had 2 more bank restraints (losing $350), and if my sister pays the bill, it's not ''me'' paying it, right? It's not like this is a store card, it's strictly a medical card. I mean the $60 for putting Psycho down was unavoidable.

Any advice on this would be greatly appreciated. Thanks.


Asked on 9/19/08, 7:26 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Not disclosing a debt for chapter 7? (in NY)

YOU MUST DISCLOSE ALL DEBTS -- EVEN A DEBT TO YOUR SISTER, YOUR MOTHER, YOUR COUSIN, YOUR SPOUSE -- IN YOUR PETITION.

All you're doing is transferring your debt from your credit card company to your family (you'll owe money to your sister for the payment).

TALK WITH YOUR LAWYER BEFORE YOU DO THIS TRANSACTION.

That $412 debt will have to be disclosed somewhere; you'll owe it either to the credit card company or to your sister, and the party who holds the debt at the time of filing has to be the party listed on the petition.

Sorry to hear about your cat. Good name for a cat, though; I, too, have a psychotic cat.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 9/21/08, 4:19 pm


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