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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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im in new jersey.i am going to file chapter 7 bankruptcy. i ...

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im in new jersey.i am going to file chapter 7 bankruptcy. i have 25000 thousand in sole propriater business debt in which i am the personal garunteer, the problem is that this business never existed.i used the business credit cards only to try to get 0 percent offers to relieve my personal medical debt which is another 30000 thousand dollars. the business name is XXXXX XXXXX i going to run into trouble with the trustee or the creditor with an adversary proceding.its to late to transfer it back over to my personal side. i dont want to have to wait a year to file.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.


Thank you for your question. I am happy to assist you.

Please clarify the following:

The only false statement concerned the business? Did you misstate income? Or length of time in business? Or anything else on the application?

Why did the credit card company send you an application for a business? Had you intended to open a business?

Customer: replied 8 years ago.
no they just send you applicatins. you do not have to have a business to get the apps. for example my girlfriens 18 year old brother recieves chase and citi business applications.they do not ask for proof and in fact the debt is from the personal side that i balanced transfered over. unfortunatly i did mistate income, but i did intend to open a business. they never tried to varify anything. with the false statements am i better off transfering it back or now it is to late. am i right to say that the worst that can happen is they obtain a court judgement against me. in nj they can only garnish 10% of wages.i only net 1000 per month and i have no assets.right now im struggling to pay the minimums which equal to 1200 dollars per month
Expert:  Ellen replied 8 years ago.


The misstatement of income could be a problem. When did you take out the cards and when did you transfer the debt to them?

Customer: replied 8 years ago.
i took those cards out around a year ago and did the balance transfers right away. all the debt was from the personal side. i even asked them if i could do it and of course they said, sure.
Expert:  Ellen replied 8 years ago.


Thank you for your question. I am happy to assist you.

Since a full year has passed, you likely will not have an adversary issue or trustee issue based on the cards. But no guarantees. The worst that could happen is that an adversary is filed and you settle the adversary with a payment plan.

If you do not file, you can have your wages garnished.

I hope that the information which I provided was helpful to you.

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Thank you,

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Customer: replied 8 years ago.
so the more time tat goes by the better
Expert:  Ellen replied 8 years ago.
Yes, that is correct.

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