Q: About 3 months ago, my girlfriend had to have an emergency surgery while we were traveling.
She has no means to pay for. So I essentially sent her about 100k via PayPal (through misc credit cards) to pay this off, with the intention that her insurance would reimburse. They didn't. I earn 125k a year, but have my own debts (heloc and a CCs). In total, my cc debt will be about 126k and a personal loan for 52k. If I file chapter 13, my calculations show I will have very little or none left to pay back. My question is, will this be considered fraudulent or clawed back because of who I sent the money to? I sent these with credit cards, so she could pay in her name (tax deductions for out of pocket medical). The trustee usually doesn't review cc statements (from what I am told) and there are no transfers on my bank accounts to her in the last 4 months. Will the creditors dispute this? My plan is to make the minimums for the next 6 months to show intent that I did try to pay.
My concern is will they sue her trying to get that money back? She doesn't have a single asset.
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A:
Filing for Chapter 13 bankruptcy could be a challenging situation, especially given the large amount you sent to your girlfriend using credit cards. Generally, trustees will review your overall financial situation, and they may look into significant transactions. While trustees don't typically examine every detail of credit card statements, if they notice large amounts sent to one person, they might investigate further.
The concern here is whether the payment could be considered preferential or fraudulent. Since you transferred funds to your girlfriend, this could potentially raise questions, especially if it was within a certain time frame before filing. However, if you can demonstrate that you were using these funds to cover legitimate medical expenses and have been trying to make minimum payments, this could work in your favor.
Regarding creditors suing your girlfriend, it’s possible they could try to recover those funds if the trustee deems the transaction questionable, but it’s not guaranteed. Since she has no assets, they may not pursue her aggressively. It’s important to proceed carefully and ensure that all actions are well-documented to show that your intent was honest.
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