CC used for college tuition-Dischargeable?

[2Bshinyandnew]

In August 08, my daughter registered for classes, full time at the local community college. She had filled out her FAFSA last spring and was advised that based on her FAFSA she could expect a Pell Grant that would cover her tuition and books. The financial Aid process was slow, and the classes needed to be paid for so she could start, so the financial aid offices told me if I put the tuition on a cc, when the aid went through, my cc would be refunded. They assured me my daughter would most likely qualify for a Pell grant. So, I charged her tuition, $935 for 12 credits.

Fast forward to yesterday, and we received a letter from the college that my daughter only qualifies for a Federal Stafford loan.

I am still current on the card I used to pay her tuition.

If I file a BK7 in January of 09, how likely is that the CC company, or even the trustee will object to the charge of college tuition? By the time I file, the charge will be almost 6 months old. Can the creditor object because student loans are not nonchargeable? If my daughter pays me back the tuition and I send $935 to the CC company, is that a preferential payment? What if my daughter wrote a check to my CC company directly from her own checking account?

[AngelinaCatHub]

2B: What you did was like a cash advance and should be dischargeable. A real school loan is like a Government sponsored loan and they are not dischargeable. Also yes it is a preferential payment. Explain what happened to your Trustee (or lawyer if represented), and you will pay it twice like I am having to do as I paid back my son-in-law. ‘Hub

[AngelinaCatHub]

What if my daughter wrote a check to my CC company directly from her own checking account?

This "possibly" could be viewed as fraud and preferential. Still, ask your lawyer. Best to be "up front" with everything. 'Hub

[danaf]

Not likely that the trustee would object. Trustees don't care about that, only what assets you have that they could possibly distribute. Also, not likely that a cc would object. If you are going to file, don't pay them back.

[RedLight]

Before I had any intention of filing, I had received these checks from my CC company for 2.99% for life. They could be used for anything, even for yourself, like a cash advance, but it runs through as a balance transfer. I used one of those checks, deposited money into my account, and then paid a student loan off. Low rate for life that I could pay back. One year later, BK, and no one said anything. I wouldn't worry about it.

[halloweendmb1]

Before I had any intention of filing, I had received these checks from my CC company for 2.99% for life. They could be used for anything, even for yourself, like a cash advance, but it runs through as a balance transfer. I used one of those checks, deposited money into my account, and then paid a student loan off. Low rate for life that I could pay back. One year later, BK, and no one said anything. I wouldn't worry about it.

I don't think your Situation is the same because you wrote the checks to yourself ad deposited them into your account. Had you written the checks out directly to the IRS or something like that might/could be different.