Can I file for bankruptcy if I pay off my student loans with my cards? 2 Answers as of November 18, 2010

If I pay off my student loans over 5 of my credit cards and maxed them out. Can I file for bankruptcy then and not have to pay back the credit card company?

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Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
Debt incurred in contemplation of bankruptcy can be determined to be non-dischargeable.
Answer Applies to: South Dakota
Replied: 11/18/2010
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Well...the official answer to your question would be that any debt that is incurred without the intent to repay is fraudulent and would be non-dischargeable in bankruptcy. However, the creditors in question must prove that you did not intend to repay, so if you make payments on the cards for a while and then have a change in circumstance financially (lowered income or increased expenses), then it might be viable. It is also less likely to be objected to in a Chapter 13 than a Chapter 7. The longer you make payments on the cards after the purchase, the less likely it is the creditors will object, but there are many considerations and you should consult with a bankruptcy attorney to more fully evaluate your situation.
Answer Applies to: California
Replied: 11/17/2010
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