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08-23-2008, 02:06 PM
| | Junior Member | | Join Date: Aug 2008
Posts: 3
| | | Bankruptcy/Tax Fraud??
What is the name of your state (only U.S. law)? Colorado
I have a question about Bankruptcy and I am aware of a situation that I am afraid the knowledge of could make me an accessory.
I know of 2 people, we will call them Person A and Person B. Person A transferred her credit card debt to the credit cards of Person B. Person B then filed for bankruptcy so that Person A's debt and Person B's debt were all included in the bankruptcy. I am also pretty sure that Person A didn't pay taxes on this money even though it would be considered a gift. Are Person A and Person B guilty of bankruptcy fraud/tax fraud/money laundering or what? The amount transferred was between $25000 and $50000. |
08-23-2008, 02:52 PM
| | Senior Member | | Join Date: Jan 2001
Posts: 12,075
| | | Person A transferred a debt, this would hardly be considered a gift. Being an accessory to a crime requires you to benefit from the crime. If you did not benefit from the bankruptcy, you cannot be an accessory to a crime. Also, BK trustees looks at the debt history, if this transfer of debt didn't raise any alarms, it is very likely nothing will happen.
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08-23-2008, 03:20 PM
| | Junior Member | | Join Date: Aug 2008
Posts: 3
| | | Person A did receive a gift, they were forgiven $25000 to $50,000 in debt with out any payment of the debt or damage to credit report since Person B is the one that filed bankruptcy. I wish I could just transfer that amount of debt to someone else and let them take the consequences. The debt I am talking about was transferred between 12 months and 18 months prior to the bankruptcy. I know these 2 individuals well and this was part of the plan. It has been denied on many occasions but just recently one of them admitted that this is what happened. There has to be a law to prevent this type of activity or everyone would transfer their debt to a family member who is going to file bankruptcy. |
08-23-2008, 04:55 PM
| | Senior Member | | Join Date: May 2001
Posts: 6,455
| | Quote:
Originally Posted by montana51  Person A did receive a gift, they were forgiven $25000 to $50,000 in debt with out any payment of the debt or damage to credit report since Person B is the one that filed bankruptcy. I wish I could just transfer that amount of debt to someone else and let them take the consequences. The debt I am talking about was transferred between 12 months and 18 months prior to the bankruptcy. I know these 2 individuals well and this was part of the plan. It has been denied on many occasions but just recently one of them admitted that this is what happened. There has to be a law to prevent this type of activity or everyone would transfer their debt to a family member who is going to file bankruptcy. |
It's not illegal for people to transfer balances to another persons credit card if, the account owner gives permission.
If person B made minimum payments for 6 or 8 months or more prior to filing, it'll be hard to prove any sort of fraud. His story will be, he was just trying to help out a friend and got in over his head.
Let the creditors object if, they feel they have a case.
When was the bk filed? |
08-23-2008, 07:36 PM
| | Junior Member | | Join Date: Aug 2008
Posts: 3
| | | About 10 months ago. In a conversation with one of the individuals, they admitted to me what had happened and what the intent was and it wasn't to help a friend out. It was a mother and daughter that live together and they both live outside of their means, and mom took to hit for the daughter. The next thing is I had been paying the daughter for the debt she had, but she didn't inform me (in fact she adamently denied the transfer) and accepted the payment. I have documentation (in the form of email) the conversations. |
08-23-2008, 08:47 PM
| | Senior Member | | Join Date: May 2001
Posts: 6,455
| | | You really don't have anything. I'd suggest you mind your on business and move on with life but, if you're determined to waste some time, contact the trustee with your concerns. |
08-23-2008, 10:21 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 6,673
| | | While I disagree with racer72's idea that you need to benefit in order to be an accessory, I agree that you do not seem an accessory in any way. Even if it were to be considered a crime (which I'm not so sure about), having knowledge you don't report does not make you an accessory.
Stay away from the problem. Unless there is something you're not telling us, there is nothing you need to get involved in here.
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08-24-2008, 05:46 AM
| | Member | | Join Date: Mar 2008
Posts: 405
| | | Why were you paying the daughter for the debt? It really seems to me that you are P.O.ed that she got her debt canceled while you still have to pay her what you owe her.
I admit it is a crappy thing to do and we all end up paying for credit card fraud...but it seems to me you are ticked because you didn't get to benefit from her getting her debt written off...and are mad you are still expected to pay what you owe her...presumably for money put on her card for your use? | |
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