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Transferring secured debt to unsecured debt

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    Transferring secured debt to unsecured debt

    On the surface things are good

    Underneath Chaos

    My bills are getting paid every month.....barely. But I have income coming in that is keeping me afloat from my Military GI bill I use to go to college.

    That ends in March when that happens.....I am going from circling the drain to falling in very quickly.....I just have too much debt. Me and my wife both work but she has taken a huge pay cut over the past year and is barely making minimum wage (she is a table games dealer at a casino....went from making $800 plus a week to more like $300 people are just not tipping because the economy is so bad)

    So anyways......this is the question. Is there anything wrong with using my credit cards (unsecured) to pay off my HELOC (secured) so when I do have to finally file for BK I dont have as many bills remaining that I HAVE to pay (I want to keep my house)

    #2
    Unless you plan on waiting 1-2 years before filing BK and made at least the minimum payments on those accounts, then yes, your plan would be considered fraud.

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      #3
      Most definetelly. I would not touch you HELOC. The trustee would know right way your intentions.

      Comment

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