Transfer of Assets - Mother - Son

[bigsam54]

I'm a recent college graduate with a boat load of student debt due to going to a private institution. Since I left high school I've been on my own financially. I've attempted to be as prudent as possible but due to some unwise investments as well as underemployment, I'm find myself with an overbearing 20k in credit card debt on top of 75k in student loans.

I have recently finally found full time employment that will pay well enough to bear my high student loans payments as well as living expenses.

My mother is older, and we talked about the potential of us transferring assets and her declaring bankruptcy instead of me. It is likely that I will have to take care of my mother soon. This will put us in the best situation because it will allow me to be able to buy a house as well as afford me more cash to pay and effort to my student loans which are my first priority.

I am some what familiar with the 'look back period' and insiders vs. outsiders. If no cash is going directly to me, but to my creditors, is this not considered an insider?

Considering much of my debt is due to school expenses, we see it as my mother is paying for that. If anyone has any insight, I'd love some advice.

[HHM]

Frankly, dumb idea.

First, any transfer of assets for less than fair market value within a year of (and sometimes up to 2-5 years) before a BK can be undone by the BK trustee. So that plan is a non-starter.

If you are talking about having your mom pay your student loans with her available credit and then declare BK, that is just out-and-out FRUAD.

Just take responsibility for the debt, its your debt, your the one that doesn't have assets (apparently), so you should declare BK.

[justbroke]

I love how direct and blunt HHM was.

I would add that... I would never do that to my Mom... even if she offered.