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  1. #1
    Join Date
    Feb 2009
    Posts
    12

    Default Paying Off Mortgage with Credit Cards

    I have a home in CA that I am upside down in. My 2nd is killing me, I took $300K cash out to buy another home and start a business. Neither worked out and now my cash is down to $100k and the mortgages add up to $4k a month. I am unemployed.

    I know this is a radical question but I am looking if it is legally possible. I currently have A+ 750 credit and about $200,000 of open credit cards that I can convert to cash. If I pay off my 2nd mortgage with credit cards, then stop paying them, can I file bankruptcy in 6-12 months and keep my home and wipe away the unsecured credit card debt?

    Regards,
    Jack Dean

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Paying Off Mortgage with Credit Cards

    No.

    Deliberately running up your credit cards, knowing full well that you're not going to pay them and intending to file bankruptcy?

    It's fraud. Don't do it.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Paying Off Mortgage with Credit Cards

    Agree, very bad idea.

  4. #4
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Paying Off Mortgage with Credit Cards

    I agree with Missy and Betty.

    I would like to add;

    Once you take out a cash adavance and use the credit lines, in this market you can expect a rate jack to around 32% on your credit cards.

    Then of course this is Bankruptcy fraud. This will be detected and you can face 20 years in prison in addition to the 32%

    Again, Missy and Betty gave you the proper advice, I suggest you take it.

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