Transferring of balance from one CC to another

[whirlwind123]

I was just looking back over all my statements for the past year as I meet with my new attorney tuesday., in April of 09 I transferred with a 3.9 convenience check balance from one cc to another cc in the amount of 13,000.00 as the interest was so much lower.
Will this be a problem?

[ForumReader]

I was just looking back over all my statements for the past year as I meet with my new attorney tuesday., in April of 09 I transferred with a 3.9 convenience check balance from one cc to another cc in the amount of 13,000.00 as the interest was so much lower.
Will this be a problem?

It sounds like it might be a problem because it is pretty recent and especially for a large cash advance like yours. Please check with your attorney about this transaction. Have you made any recent payments on the cc that the cash advance was taken out to pay another cc?

[whirlwind123]

I have paid on that card up until the end of august.

[MSbklawyer]

You could be in for a fight. Not that you'll lose, necessarily, but nonetheless, a fight. The answer may depend on which circuit you are in.


Here is a case that analyzes the potential issues:


In re Johnson, 313 B.R. 119 (Bankr. E.D.N.Y., 2004)

It's a pre-BAPCPA case, but still good law.

[albacore44]

lots of people have done that including me. with no intention of fraud of course, just digging a deeper hole. best to let it age. put as much time between the transaction and when you file, and just deal with the phone calls and letters

[Chowder]

I was just looking back over all my statements for the past year as I meet with my new attorney tuesday., in April of 09 I transferred with a 3.9 convenience check balance from one cc to another cc in the amount of 13,000.00 as the interest was so much lower.
Will this be a problem?

What did our Attorney say?

Look for posts by HHM on this subject. I believe HHM had indicated to me this situation could be considered a preferential payment. Not really too much of an issue for you (the filer) though in that case.

[backtoschool]

There is a chance that the balance transfer and the payment to your mother will be considered a preferential payment and the trustee will go after your mother for the money.

90 days is the absolute legal minimum for large charges, it is better to wait at least six months.

And any transfer of money or property to a family member has a two year look back in a lot of districts. I know it does in mine.

[whirlwind123]

Ohio Bankruptcy law, I just found a site on it, says for relatives they can go back one year.

[Chowder]

There is a chance that the balance transfer and the payment to your mother will be considered a preferential payment and the trustee will go after your mother for the money.

Ah!. Yes, now I see the other threads. hmmmmmm.....

[Amy26]

I didn't do one for 13,000 but I did two ... one for 6,000 and one for 4,000. In March 09. I made 2 payments on it. Then filed in June. They were from card to card.

Have not heard a peep.... *knocks on wood*.

[backtoschool]

I didn't do one for 13,000 but I did two ... one for 6,000 and one for 4,000. In March 09. I made 2 payments on it. Then filed in June. They were from card to card.

Have not heard a peep.... *knocks on wood*.

Were either used to pay a relative in your case? In the OP's case she used one of the payments to pay off a loan to her mother.

[Amy26]

Well I musta missed that I didn't see it in her original post... :o

No, I did not pay a relative with it... lol.

[whirlwind123]

Pay back of money to parents were in June of 08., haven't filed yet., I was told wait a year, but it has been past a year now.

[Flamingo]

Were either used to pay a relative in your case? In the OP's case she used one of the payments to pay off a loan to her mother.

In the OP's original posting, there is no mention of his using those funds to pay his parents; he states they are from one cc to another cc...apparently someone on here read his past postings and intertwined it. He did that over a year ago. He is now speaking about April 2009.

To the OP - get as much distance as you can away from that transfer date...at least six months. Discuss witih your attorney.

[backtoschool]

In the OP's original posting, there is no mention of his using those funds to pay his parents; he states they are from one cc to another cc...apparently someone on here read his past postings and intertwined it. He did that over a year ago. He is now speaking about April 2009.

To the OP - get as much distance as you can away from that transfer date...at least six months. Discuss witih your attorney.

Oh I see it now, the payment to the family member was in June of 08.

But in my district that would still be a problem because insider payments and transfers go back two years. In the OP's case in Ohio it is one year so it should be fine.