by August 12th, 2010. Filed under: Personal Finance.
dahlia asked:
Our private student loans are KILLING us. We can not make ends meet anymore. There is not a lot of credit card debt, less than 2k, but our car payment is high too because of negative equity from previous vehicles. The government student loans have been consolidated and aren’t too bad. Is bankruptcy the only option?
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Our private student loans are KILLING us. We can not make ends meet anymore. There is not a lot of credit card debt, less than 2k, but our car payment is high too because of negative equity from previous vehicles. The government student loans have been consolidated and aren’t too bad. Is bankruptcy the only option?
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Filed under: Personal Finance
August 12th, 2010 at 11:55 pm
government student loans
Even if you file bankruptcy you will still be responsible for your student loans. Maybe you should think about surrendering your vehicle if you cannot afford it any buy one that you can.
August 15th, 2010 at 3:36 am
government student loans
Bankruptcy should be your LAST option. What you should do is pay off your $2K dept, then work on your car. Pay your monthly payment, then pay extra and put it toward the principle, not the whol amount. When it goes to the whole amount it’s mostly interest, but if you get the principle down far enough you can re-finance the car and get a lower rate and monthly payment. (We’re doing the same thing) Then you can work on yourstudent loans. When you have extra money at the end of the month, put it toward something. It will take a lot of descipline, but you’ll be able to do it and it’s a lot better than filing for bankruptcy.
August 17th, 2010 at 6:10 pm
government student loans
I would definitely use it as a LAST OPTION…It will ruin your credit, and be on your credit score for YEARS…But I think Student Loans are not covered in this. My friends filed it and they can not get fiananced for anything now, their credit is shot to hell, and they are having to rent a house b/c they could not buy one.
August 18th, 2010 at 9:49 pm
Kansieo.com
Bankruptcy is not as scary as it sounds and for some people, the release from the burden and the stress of repayments is a welcome relief. That said, petitioning for bankruptcy is not a decision that should be taken lightly and it can have serious repercussions for you in the future. In other words, it should only be seen as a last resort to solving your financial problems.
August 19th, 2010 at 9:26 pm
government student loans
Bankruptcy should be the very last option. Not only is it a mark on your credit for at least 7 years (many banks that offer the best rates will not lend to anybody with a bankruptcy in the past 7 years, I used to work for such a bank), but it can prevent you from working many different jobs. There are many employeers that will not hire you if you ever filed bankrupcty. Although it may fall off of your credit in 7 years, it is still listed in court documents.
First, you should find ways to cut back. How often do you eat out? How often do you go to the movies? A sporting event? I have worked with many people who complain that they can not make ends meet, but they are spending $100 a month on cable, they go to a movie every week, eat out 4 times a week, and have season tickets.
I would also suggest finding ways to increase your income. Can you pick up a second job? Work more hours? How about finding a better paying job (many people do not realize that they can often get more money for the same work at another company).
Lastly, you should call your student loan company and let them know about your bind. Since student loans are unsecured (they can’t take anything that you own), they will be willing to work out something. Sometimes they will accept smaller payments for a period of time. Maybe they will suspend payments for a period, too. They would rather work out a payment plan than see you stop making payments altogether. Try this with your auto loan, too. If your car is repossessed, the bank will not be able to recover their money by selling it (you said you have negative equity). So they would rather work out a payment plan than take your car back and lose money.
August 21st, 2010 at 6:15 pm
Kansieo.com
When the property of the debtor is sold to recover and pay off the debt it is called Chapter 7 bankruptcy. Contrary to popular belief, all the property owned by a debtor is not sold, some part of it is left with him to allow him to start afresh.
When there is no sale of property but the debt are reorganized so as the debtors, are able to repay them over a long period it is called Chapter 13 bankruptcy.
Both these types of bankruptcy have a large number of rules, and exceptions, suited to different kind of debts, individuals and other concerns.
The “ticket in” is counseling session that everyone who wishes to file a bankruptcy must attend. This session must be attended at least six months prior to filing for bankruptcy. This term was adopted in the new bankruptcy law.
The “ticket out” means to attend a financial education class from listed agencies before getting approved for bankruptcy. This was also adopted by new law. During this session the the court will also determine according to predetermined standards by IRS that what all is required for food, clothing, shelter etc. and what all can be used to recover debts.
The bankruptcy court determines whether or not you can qualify for chapter 7 bankruptcy. Read more from:
August 22nd, 2010 at 4:31 am
Caffeinated Content
If you file for bankruptcy (chapter 7) all your debts will be wiped out EXCEPT your student loans. Student loans can NEVER be discharged. However, if all your other debts are discharged it might make it possible to pay off the student loans. Bankruptcy is not scary if you are under a mountain of debt. It is much better than having creditors going after you. Find a bankruptcy lawyer and good luck
August 24th, 2010 at 9:04 am
Website content
if i have learned anything from answers it is the first thing you do is get a lawyer!!!