joined line of credit debt
January 4th, 2009 by Questions
I have more that $100,000 debt mostly credit cards. I also had a line of credit of $20,000 joined with my wife with a balance owing of $10,000. I have paid it off completely last week and closed it, not knowing that I can not pay more to one creditor. The idea was to save my wife from bankruptcy.
I am wondering what will happen now, when I file for bankruptcy next week?
Posted from: British Columbia
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January 05, 2009 at 10:45 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
You will need to discuss this with a local trustee as practices may vary slightly from province to province.
Technically what you have done is committed a fraudulent preference and this will have a significant impact on your bankruptcy and you will likely have to repay the $10,000 to your trustee so that it can be divided up equally amongst all of your creditors.