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removal of co-signer on a credit card

I am retired and I live on pension income. My financial situation has been slowly worsening in the past years .In all likelyhood I will need to declare bankruptcy in the next 12 months . I have several larger credit card bills (approx 10,000) and several smaller ones (1,000). I am holding my own at the moment. I am concerned that my partner who co-signed for the cards will be responsible if i go under . I have recently cancelled my partners cards . I realize that does not mean she will no longer be liable for previous debts.I have the abilty to shuffle money from one card to another and pay the balance on one card at a time. If my partner no longer had a card and the balance was paid in full .. would that remove her liabilty .After it was paid i would have to then put the debt back on the card to repay the other.I understand it is not ethical to do this but is it illegal .I am aware many people pay one card by using another which is not good practise but not illegal .It would be absolutely impossible for a creditor to get a dime from her . Zero income and zero assets . I just want to spare her the hounding by the collection agencies.

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One Response to “removal of co-signer on a credit card”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

What your proposing is very risky. If the creditors are able to prove that you purposely shuffled money around to avoid any liability for a co-signor they will then be able to have the debts for the accounts involved survive bankruptcy. You are much better off to not transfer any monies around and wait to see what the creditors do. The creditors don’t always go after the co-signor, it depends on how the contracts are worded. You have done everything you legally can to protect your partners interests and are best to leave it be. If you start to transfer any monies around just prior to a bankruptcy this will inevitably increases the scrutiny on your file and with increased scrutiny often comes the increased likelihood of difficulties.