Can I pay someone I owe money to via CC?

[albert88]

Hello everyone. I got a lot of useful feedback on my last post and I truly appreciate it...It's such a confusing time in my life, but hopefully this Friday a lot of questions will be answered by the attorney.

Till then I need one more concern addressed: If I owe someone money, and they are self employed, can I re-pay some of this money I owe them by using one of my CCs? (to swipe at their place of business) Or is this going to be considered a luxury item? I need to do this to avoid going into a small claims court with the person.

[scottsnewlight]

TO me, why, unless you are going to pay them back using the CC card and then file that CC card under your bankruptcy ???? not a good ideal, and this person you owe money to why can't you file them under your bankruptcy ? say that CC card does'nt pay him the money for some reason, then you might still see him in small claims court,, just my thoughts, not trying to be rude or anything,,

PS, check your Private Messages / mailbox for this site

[magyar123]

Depends how much it is - and when you plan on filing. If you plan on filing soon just include this business as a creditor.
Don't rob Peter to pay Paul.

[butterflywings]

Using a credit card when you know you are going to file BK is considered Bankruptcy Fraud.

Knowingly putting charges on a card when you know you cannot pay those charges back will get you into trouble.

I wouldn't do it if I were you.

[no_it_all]

I don't understand...you are going bankrupt but worried about paying a particular bill? Why? Just include it with everything else and call it a day....

[FreshLikeADaisy]

Albert, because you're declaring bk, a judgement has just become the least of your problems.

If they sue and get a judgement prior to you filing bk, then after your bk discharge you can have your atty do a "Motion to Vacate" at the court where the judgement was filed, and it gets removed from your record.

If they don't get around to suing you before your bk, then include them as a creditor in your filing (in fact, do that anyway ) and that's then end of that debt. Period. And no, they can't sue you for it. The most they could do would be to file an objection, and it will take far more than them simply proving that you owe the debt to keep it from being discharged. I would strongly suggest you lay out the specifics of this situation during your atty consult so he can tell you specifically where you stand with it.

Good luck!!!

[GWBcasualty]

I don't understand...you are going bankrupt but worried about paying a particular bill? Why? Just include it with everything else and call it a day....

I think I understand where the OP is coming from.

He/she owes money to a small business which is probably struggling, maybe the owner is someone that she knows well... so, why not have "big bad bank" pay for that? They are going to get bailed out anyway!

Ethically I have no issue with that, practically I think that in order for this to fly under the radar, you need to:
1) Wait 180 days (but at least 90 days) from the transaction before you file.
2) Make at least a couple of payments on that card after the transaction.

Than it depends on the size of the transaction, of course.

[fltoo]

Sounds like you are not purchasing from this business, just using his terminal to swipe your card to pay a personal debt to him?

How much money are you talking here? Could be very risky if it is substantial and I would get a receipt for something purchased if you plan to do this.

[TEW]

Hello everyone. I got a lot of useful feedback on my last post and I truly appreciate it...It's such a confusing time in my life, but hopefully this Friday a lot of questions will be answered by the attorney.

Till then I need one more concern addressed: If I owe someone money, and they are self employed, can I re-pay some of this money I owe them by using one of my CCs? (to swipe at their place of business) Or is this going to be considered a luxury item? I need to do this to avoid going into a small claims court with the person.

There is nothing to stop you from paying this back BUT wait until after your discharge. I have a debt i owe to a small company that helped me out when i needed it. so I am making payments to them. I did include them in the BK.

[jessegirl]

I would NOT use a CC that you plan on claiming bk on...That can be considered fraud. Knowing using the card when you know you are going to claim bk...Bad move. Just do not put them in the BK and pay them little by little out of your own pocket. Do what TEW said.

[GWBcasualty]

I would NOT use a CC that you plan on claiming bk on...That can be considered fraud. Knowing using the card when you know you are going to claim bk...Bad move. Just do not put them in the BK and pay them little by little out of your own pocket. Do what TEW said.

What if he/she will wait 6 months to file and makes 2-3 minimum payments to the CC??

I would think no one would object... but I guess it depends on the amount, I think if it's less than $2K and is 6 months out on a CC that has already a balance it's ok. AM I wrong?

[jessegirl]

What if he/she will wait 6 months to file and makes 2-3 minimum payments to the CC??

I would think no one would object... but I guess it depends on the amount, I think if it's less than $2K and is 6 months out on a CC that has already a balance it's ok. AM I wrong?

I guess that may be alright. But the fact still remains that they know that they are going to claim bankruptcy. You are not suppose to go and charge things months before filing knowing that you are going to file. Thats called abusing the system....And believe me I am not in ay way for the system, if you read my tales you will know I am knee deep in it and trying to fight my way out...

[GWBcasualty]

I guess that may be alright. But the fact still remains that they know that they are going to claim bankruptcy. You are not suppose to go and charge things months before filing knowing that you are going to file. Thats called abusing the system....And believe me I am not in ay way for the system, if you read my tales you will know I am knee deep in it and trying to fight my way out...

I understand that is wrong to abuse the system and that the forum policy is to avoid giving help in... well, abusing it.

I will do my best not to give this sort of advice in the future, but I believe that the OP is in good faith and probably just wants to avoid having an acquaintance knowing about his/her bankruptcy.

On a side note, let say that the debt is $3K... to Citi or Chase that means squat and they are getting zillions of Fed money, while for a small biz it could mean a month worth of rent money and the govt doesn't give %^$$ about it. So, the ethical issue can go both ways...

[jessegirl]

I understand that is wrong to abuse the system and that the forum policy is to avoid giving help in... well, abusing it.

I will do my best not to give this sort of advice in the future, but I believe that the OP is in good faith and probably just wants to avoid having an acquaintance knowing about his/her bankruptcy.

On a side note, let say that the debt is $3K... to Citi or Chase that means squat and they are getting zillions of Fed money, while for a small biz it could mean a month worth of rent money and the govt doesn't give %^$$ about it. So, the ethical issue can go both ways...

I guess you could get away with it. Believe me I know what you are saying.
Times are tough for everyone. It sucks.....

[catleg]

The worst mistake is to rush into bankruptcy.
Plan, plan, and then plan some more.
Don't file until you feel like the worst is behind you and you're on an upswing.
As far as using or not using cards, there is no gold star for being a little less bankrupt. You have to do what's right for you and set your life on the right track. Nobody expects you to go homeless , hungry , or do without medical care if you have a credit card to pay for it. The lawyer is not allowed to advise you to get further into debt in contemplation of bankruptcy.