Would this unethical plan top pay of school loan work?
I was wondering if this unethical plan to pay off a school loan would work let me know what you think.
My girlfriend has a $20000 school loan that she cant really pay because she is a stay at home mom. She does have a small business and has begun to build some business credit. I was thinking that she could change her business from a sole proprietor to an LLC and use a business credit card she has to pay off part of the school loan then claim bankruptcy on the business.
I just figure this would look kinda suspicious to the bank, her personal credit is already screwed up but she does have an $8000 business credit card. I dont think a balance transfer would work but if she slowly paid say 5 times the minimum until maxed out then claim bankruptcy. (Its a government school loan that does not allow bankruptcy) but if we could slowly transfer the balance to the credit card and then file. Would this be fraud or would the bank just laugh while we now have a higher interest?
Answers:
Of course it's fraud. And if she doe's this the credit card company will show up at the bankruptcy hearing and demand that they not be included in the bankruptcy because she committed fraud.
It's no different then someone taking out a large cash advance on a credit card and then filing bankruptcy. It's fraud.
This is fraud, period. Plus, it wouldn't work.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
More Related Questions and Answers...