bankruptcy then student loans?

vabunuc

so ive backed myself into a corner with some old debt. I am considering filling bankruptcy to stop the collection calls and start over. I have a few credit cards now that i am behind on, but should be back on track with in a few weeks.

I need to stop the bill collection calls. so I am considering filing bankruptcy for some old debt my lovely ex-roommates left me with, and another thing that i thought i took care of and refuse to pay (I should have gotten the arrangement in writing).

I also want to go back to school in January to become a pharmacist. So my question is this: If i file bankruptcy could it stop me from receiving financial aid loans for school?

noir_blood

how big of a debt do you have? Because from the other few bankruptcy threads that have popped up, the general consensus is that you shouldn't jump into bankrupcy for just a few thousand dollars.

And if the main issue is the debt collectors, depending on what they are doing, they might be breaking a law or two.

musanman

Filing bankruptcy basically means nobody will give you any money or credit for many years. This isn't a good idea at all. You might talk to a financial advisor and see if you can consolidate any of your debt or work out various ways to pay off your debt.

vabunuc

noir_blood wrote: »

And if the main issue is the debt collectors, depending on what they are doing, they might be breaking a law or two.

I know they are breaking a law, but i dont know what to do about it. They wont stop calling me at work. I have told them, and another associate has told them i cant accept personal calls. They call me at work at lest once a week. I have filed a complaint with the ftc, but as i understand its just a complaint database. The dont do anything to resolve any filed complaints.

noir_blood

I been there man, and I know it sucks, but still, no reason to file bankrupcy. Try sending your story out to consumerist.com, they usually have a bunch of good information the can provide. I guess you could have someone tell them you don't work there anymore.

Or, if you actually do owe debt, try to make arrangements. Make a good faith payment and the like.

illig

just say the following:

"The Fair Debt Collection Practices Act requires that you stop phoning me at home and at work once I request that you do so. I intend to send you a certified letter tomorrow putting my no contact request in writing. If you continue to phone me, then I will file a complaint with the FTC and the attorney general."

Then send the certified letter, and follow up on your thread to contact the attorney general if they don't stop.

You can eventually sue (small claims court) to recover damages if they continue to defy your request. Might pay for your debt.

Most importantly: know your rights, and do some research. Don't just listen to a bunch of forum folk.

Daenris

vabunuc wrote: »

I also want to go back to school in January to become a pharmacist. So my question is this: If i file bankruptcy could it stop me from receiving financial aid loans for school?

Having a bankruptcy on your record, especially as recent as this would be, will definitely adversely impact your ability to get any kind of private loan.

However, I'm not sure about it's affect on Federal student loans as these are usually based on financial need rather than credit score. A brief survey of Google results suggests that it may not impact your ability to get Federal loans.

Edit: Here's a site with a nice rundown of the situation. http://www.finaid.org/questions/bankruptcy.phtml

Crashtard

Before you consider bankruptcy I would try calling one of those 1800 help me out of debt numbers. If nothing else they might be able to give you some advice on what to do.

The Crowing One

Call your creditors. Work out a plan.

Bk. filings usually increase payments, sometimes to a level that is unreasonable/unaffordable. The filing will also prevent you from gaining new credit for some time, up to ten years depending on the situation.

Call the companies you owe money to and see what you can work out. Often they will settle for less than the full amount or will place you on a plan to repay. Bk. is a last-ditch resort that should be avoided if you can pay off your debt in any other way.

bowen

How much debt do you have?

amateurhour

be careful with those 1 800 numbers. A lot of them are just loan offices in disguise that will pay off your debt so that you only owe them, at ridiculous interest and with a contract that's almost impossible to get out of, or they're going to negotiate for you for a percentage of your debt, then tack on a fee for the service.

There are some reputable debt help companies out there though. I was just saying make sure you check out the fine print. It's easy to feel panicked and let one of these places just take over your life so that you don't have to worry about it, but in the long run it can bite you in the ass if you don't do your homework.

bowen

There's also a few that are really "Bankruptcy negotiators." Meaning your credit report gets hit with a Bankruptcy.

Sarcastro

I have heard of loan councellors as well, which is kind of a financial planner who pays off your immediate debts, and then works with you to pay off that loan to them. My guess is that if you get a bad one, things could go horribly awry, but get a good one and it would be golden.

amateurhour

bowen wrote: »

There's also a few that are really "Bankruptcy negotiators." Meaning your credit report gets hit with a Bankruptcy.

this.

the bad ones will steamroll you through the paperwork, let you declare a chapter thirteen I believe, which lets you keep your car/house, but default on credit cards and such, appear in court for you, and then kick you out the door thinking everything is fine.

bowen

amateurhour wrote: »

bowen wrote: »

There's also a few that are really "Bankruptcy negotiators." Meaning your credit report gets hit with a Bankruptcy.

this.

the bad ones will steamroll you through the paperwork, let you declare a chapter thirteen I believe, which lets you keep your car/house, but default on credit cards and such, appear in court for you, and then kick you out the door thinking everything is fine.

There's been a change in the laws recently, I think, that let's you file but you still have to pay back your debt. I think this only applies to these specific scenarios though.

amateurhour

bowen wrote: »

amateurhour wrote: »

bowen wrote: »

There's also a few that are really "Bankruptcy negotiators." Meaning your credit report gets hit with a Bankruptcy.

this.

the bad ones will steamroll you through the paperwork, let you declare a chapter thirteen I believe, which lets you keep your car/house, but default on credit cards and such, appear in court for you, and then kick you out the door thinking everything is fine.

There's been a change in the laws recently, I think, that let's you file but you still have to pay back your debt. I think this only applies to these specific scenarios though.

It depends on the type of debt.

If you file, when you go to court, any and all of your creditors are welcome to come or send a representative on behalf of their company. The judge can decide what needs to be paid back, and a court payment schedule is then set, which usually ends up with it just coming directly out of your paycheck.

Credit cards you can default on and even when you file in "most" cases you're done with them, minus a small percentage, federal and private student loans have to be paid back, cars and houses can go away but you lose the car and/or house, and everything after that depends on what happens in court.

Once again, IANAL. I've just been to a few bankruptcy hearings with family (bankruptcy attorney) and watched what happened those specific times.

vabunuc

ok bankruptcy not an option. thanks for the advice.