Credit card issuer approaches me with a proposal.
A well known credit card issuer to whom I owe 11K and am past due by 6 months has approached me with an offer….Repay the debt and we will give you a new credit card with a credit limit of 50% of your original debt. They know that I owe 180K to a total of 12 creditors.
It sounds highly unethical but is it illegal? If I declare bankruptcy within 3 months after I accept their offer will the trustee attempt to get the 11K that I paid them from me or from them?
It is not unethical for the credit card company to ask you to repay your debt – the new credit card offer is a bit strange, but from their perspective it clears up the old debt.
If you file for bankruptcy within three months of this transaction your trustee will very likely demand that the funds be returned by the credit card company. Of course, if you tell the credit card company you are about to file for bankruptcy they will not honour their deal…