bankruptcy experiance
 

my sons divorce and school loans have left him considering bankruptcy. any experience with this out there in this forum. oh and my wife is a co signer she to will have to file. im so tired of this :censored::mad::mad:

when you file, you can have exclusions...if you dont want your wife to file talk to the lawyer and see if you can assume the debt...her credit has a bearing on your credit..

if he's really, and i mean really in trouble..thats what its there for..if he want a lifestyle change, he should buckle down and do the right thing...no school loans can be included in the bankruptcy

in a year he'll have better credit than he does now...it will follow him, but its not a big deal anymore..because he cant file again, and creditors know it...its a last resort thing, but..if he really needs to..id support him, if he was my son

whats his wife walking away with? is she in debt too? will she file? lots of questions, and you should really talk to an attorney...a good one, not those 199.95 file guys...

A friend of mine looked into this and was told that school loans (student loans) will not be dismissed in bankruptcy.

Find a really good lawyer.

That is correct. Taxes and student loans are two main things not dismissable by bankruptcy. Otherwise every graduating college student would file since technically their debts far outweigh their assets upon graduation.

Yeah, no go on the student loans. They are with you forever until you die with no heirs or pay them off.

the lawyer said his type of school loans were covered. I don't know. hes my step son and his mother and him never listen to me so I just grin a bear it . if you need me ill be living under a rock.

My God, you must be my neighbor next rock over. LOL

That lawyer is feeding someone some crapola. As said..... No student loan will be dismissed by bankruptcy. He can get help to work out his payments but the loan is his for life or until it's paid off.

He'll have a hard time discharging student loans and the divorce settlement is iffy. Child support, for instance, is not dischargable.

You really need some good advice on this one. Make sure the attorney does a LOT of BK work. Ask around.

Agree with the previous "Student Loan" not available for discharge....HOWEVER:

Is this a trade or tech school, etc. loan and not a traditional 4 yr bachelors, or grad school loan?

If trade loan etc. those may fall under differing rules. Check this out:

Student Loans: Maybe They Can Be Discharged After All

Section 523(a)(8) of the Bankruptcy Code states that student loans cannot be discharged, unless payment of the student loans would impose an undue hardship upon the debtor or his dependents. This section has been part of the bankruptcy law for over twenty-five years. It was also amended in 2005 to include private student loans.

However, not all loans incurred in connection with education costs are student loans. For a loan to fall with this section, (1) it must have been made under a government or nonprofit student loan program, or (2) it must be a qualified educational loan under section 221(d)(1) of the Internal Revenue Code, for attending an eligible education institution as defined in section 221(d)(2) of the Internal Revenue Code, and incurred for costs of attendance as defined in section 472 of the Higher Education Act.

If you have a student loan and are filing for bankruptcy, it would be wise to discuss with your attorney whether your student loan falls within these definitions. Perhaps your student loan bill arrives from Sallie Mae and you attended a public university; in such a case you probably can conclude that your student loan qualifies under definition (1) above. If so, you cannot discharge the student loan in bankruptcy unless you can prove undue hardship.

On the other hand, if you attended a for-profit trade school and obtained a private loan from the school, or from a financial institution to which the school referred you, maybe none, or only part, of such a loan qualifies under definition (2) above. Remember, if a private student loan does not qualify under the extensive legal provisions referred to in definition (2), the loan is dischargeable without your having to prove undue hardship.

For example, perhaps you were not an “eligible student” at the time the private student loan was made to you; or maybe the loan was not incurred to pay “qualified education expenses”; or perhaps the loan was not for attendance at an “eligible education institution” because the school was not accredited under Title IV of the Higher Education Act. All these are requirements imposed by section 221(d) of the Internal Revenue Code. Failure of a private student loan to meet any of these criteria means that the loan is fully dischargeable, because it would not qualify under section 523(a)(8) of the bankruptcy law.

Because section 523(a)(8) incorporates requirements contained in section 221(d) of the Internal Revenue Code, persons filing for bankruptcy and owing private student loans should carefully review section 221(d) with their attorney to determine if such loans are dischargeable. Section 221(d) is lengthy, and it imposes many requirements which must be met before a loan can qualify as a student loan. If your loans fail to meet these criteria, you may be able to discharge them in your bankruptcy.
http://www.bankruptcylawnetwork.com/...ged-after-all/

When he was in school he should have took a course in Personal Finance and Credit Scores

but then, they offer no such courses and instead teach crap that has not bearing on rela life...Good luck under the rock

Banks and the government always get paid. Transfer as much debt to credit cards and the default on the cards. CC will settle on 50 cents on the dollar. This will give you 5 years bad credit. If you don't have the $$'s to pay out the cards then a credit consoling organization will finance it for you. They will negotiate with the CC's and give you one payment. Again, this will leave you 5 years bad credit.

Bankruptcy will follow you forever. Look at any Bank questionnaire, "Have you ever declared bankruptcy". They don't care if it was 5 years or 50 since you filed. This is your last resort option.

A lawyer will give you a big bill. Accountant may help. Credit consoling is your best bet.

One spouse with bad credit is much better than two spouses with bad credit.

Good luck!

Shortsaled a house 15 months ago,got the bank to write off 40k. missed a few credit card payments, but still mananaged to hang on to 2 out of 4 credit cards. Total financial obligations today of about 14k. 15 monts ago before short sale credit was 640 right after short sale 530., today 15 monts later, 650. Always negotiate like crazy with creditors before filling bankrupcy. If they wont negotiate with you in good faith, then go file.

Not true... I went through a bad divorce back in the mid 80's that left me no choice but to declare bankruptcy. I became a cash only guy for 7 years and after that my bankruptcy fell off and I started building credit. I score in the 780's now and have not been denied for any type of credit I have applied for since that 7 year time after my bankruptcy. I have not ever seen any application that ask "have you ever filed bankruptcy". The key is to change, never be late on a payment. Keep a couple low interest cards you pay off monthly if you use them. Keep your income to debt within a good ratio. Pay off debt early, double up, etc...