How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask dylatess Your Own Question
dylatess, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5155
Experience:  37 plus years of experience specializing in bankruptcy law
Type Your Bankruptcy Law Question Here...
dylatess is online now
A new question is answered every 9 seconds

If you file for bankruptcy but have been using the credit cards

This answer was rated:

If you file for bankruptcy but have been using the credit cards of family members to buy products for the business, and have paid off, does the trustee go after those you paid? how does this process work with regards XXXXX XXXXX 12 month loopback period?
Over 34 years, I have assisted my clients with debt problems having filed more than 32000 Chapter 7 and Chapter 13 Bankruptcy petitions. The trustee is only concerned with what is known as preferential treatment. That is, he looks at any of your creditors that you have paid while not paying others. Accordingly, in your case, if you used credit cards in the names of your family members, they are NOT your creditors. Likewise, there is no preferential treatment as you paid or someone paid creditors that are not part of your bankruptcy and could not be listed in your BK as they are not your debt.
Customer: replied 4 years ago.

thanks for your reply. so in other words, the trustee could not sue my parents, for using and paying their credit cards?

No. Not at all. They are not a party to your bankruptcy and the trustee has no jurisdiction over them.
dylatess and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

now what about if my business paid them, and i just file for personal bankruptcy, is that the same case?

You are asking a new question and not a follow up question. Please post your new question and I would be happy to reply.