I have $20K in credit card debt
, $30K in student loan debt (pre-dates my marriage), and I’m stuck in a job I abhor. I am also married and we are discussing a divorce. I’ve been told that my wife would be liable for the credit card debt even after the divorce.
I’d like to pursue a new line of work that would be more fulfilling, but much less lucrative. Up to this point, I have great credit and I’ve made payments on time for all debts for several years.
I need to know if the following scenario would practically protect my ex-wife from debt liability:
1) We divorce
2) I open new lines of credit and do a ‘balance transfer’ to transfer the $20K of credit card debt into these new lines of credit under my name
3) I then default due to my change of job
Would transferring the old debt into new lines of credit after the divorce protect her?
I believe I would be eligible for discharging my student loan debt as I could meet the requirements of the Brunner test as laid out on this website:
Ideally, I’d like to knock out both debts in bankruptcy without creating a liability for my ex-wife.
Is this a practical idea? If not, why? What legal issues would prevent this scenario from working? How could I make it work?