cancel
Showing results for 
Search instead for 
Did you mean: 

Do's and Don'ts before filing chapter 7?

tag
Anonymous
Not applicable

Do's and Don'ts before filing chapter 7?

short story, had high paying job, lost high paying job, now make about 40% less and plan on filing within 6 months.

 

Question is I want to go back to college would it be fine to take out a student loan and pay it back for the 6 months before filing.  Due to me making a lot less I can't afford to pay all of my creditors and I'm not sure if I should stop paying them all or "try" to continue to pay some of them.

Message 1 of 4
3 REPLIES 3
FireMedic1
Community Leader
Mega Contributor

Re: Do's and Don'ts before filing chapter 7?

The Bankruptcy Reform Act of 1994 (P.L. 103-394) amended the US Bankruptcy Code at 11 USC 525(c) to prohibit denial of government student grants and loans based solely on the student's or borrower's past or present filing of a bankruptcy petition. The only exception is the Federal PLUS loan. But the sticky point may be the trustee might ask. You took out a loan for school and paid it back before BK. Why didnt you pay back the creditors. Kind of a grey area there. I'm sure you'll answer you need the classes to get a better paying job. But it falls under asking a BK lawyer first before you'd make any moves. In the eyes of a trustee. It may not fly. I could be wrong though. It could fall under paying off one lender while ignoring the others.


Message 2 of 4
Anonymous
Not applicable

Re: Do's and Don'ts before filing chapter 7?

What if I took out a student loan that doesn’t require to be paid back until after graduation? I’m wanting to go back to college but I’m not wanting to wait until after filing chapter 7.
Message 3 of 4
FireMedic1
Community Leader
Mega Contributor

Re: Do's and Don'ts before filing chapter 7?

Well your OP stated paying it back before BK. Thats why I posted my responce from the BK laws. I havent had a student loan since the 80's. If you dont have to pay it back until you graduate like all student loans work. That would fall into getting your lawyers advice. Shouldnt be a problem if its needed to get a job like you had before. People file all the time with student loans. But as you know. They wont get DC'ed. Good Luck!


Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.