We live in a non-community property state and between my wife and I we owe $50,000 in credit card debt. I have expertly managed to almost never pay interest, but transfer balances at a 2% fee on an annual basis to keep our debt payments manageable.
Sometimes, in order to keep those great transfer rates, I have transferred my balances to my wife's credit cards (and visa-versa). I want to file chapter 7 and all but $11,000 of our debt is in my name. The only reason my wife has $11,000 in credit card debt is because I recently transferred some onto her credit card, NOT because she made any purchases herself.
I have no home equity because we just purchased our home with a minimal down payment, we are upside down on our vehicles, and exemptions will cover all of our property.
I would love for my wife to keep her credit score (close to 780) in tact. If I file bankruptcy, that would allow us to use her beautiful credit score to get an auto loan and allow the bank to repossess the two vehicles in my name. It would be a fresh start for us financially but we'd also have the benefit of using her credit if needed in the future. And don't get me wrong, I hate credit cards more than I hate anything on earth and we aren't going to abuse the fact that we still have access to credit after I file chapter 7.
What would happen if I transfer that $11,000 on my wife's credit card BACK to my cards and then file bankruptcy in six months? I am fine with waiting more than a year to file to avoid objections to that transfer from wife's card back to mine, but if I do that when should I stop making credit card payments? Can I go say- 7 months without making any payments?
Sometimes, in order to keep those great transfer rates, I have transferred my balances to my wife's credit cards (and visa-versa). I want to file chapter 7 and all but $11,000 of our debt is in my name. The only reason my wife has $11,000 in credit card debt is because I recently transferred some onto her credit card, NOT because she made any purchases herself.
I have no home equity because we just purchased our home with a minimal down payment, we are upside down on our vehicles, and exemptions will cover all of our property.
I would love for my wife to keep her credit score (close to 780) in tact. If I file bankruptcy, that would allow us to use her beautiful credit score to get an auto loan and allow the bank to repossess the two vehicles in my name. It would be a fresh start for us financially but we'd also have the benefit of using her credit if needed in the future. And don't get me wrong, I hate credit cards more than I hate anything on earth and we aren't going to abuse the fact that we still have access to credit after I file chapter 7.
What would happen if I transfer that $11,000 on my wife's credit card BACK to my cards and then file bankruptcy in six months? I am fine with waiting more than a year to file to avoid objections to that transfer from wife's card back to mine, but if I do that when should I stop making credit card payments? Can I go say- 7 months without making any payments?
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