What is discharged by Chapter 7 Bankruptcy? I have a 10 year old balance of $8,000 directly to my college.?

Question

(Somehow my parents were able to get them to let me attend when I didn't have all the money.) They're not actively collecting - but are witholding my transcript (for 3 lousy semesters) as a result. No scheduled payments. Will Chapter 7 erase this bill? I really want to go back to school and I'm not getting any younger. I stay at home with my 3 young children right now and my husband works. Child care costs were exhausting my entire net income, so I decided that I would stay home instead. (I need more education in order to get a job that would make enough money to see a profit after child care). I've had many credit problems as a result of having to leave work including a reposession of my car and a judgment for a hospital bill from when I gave birth to my first child. My credit score is very poor right now and has nowhere to go but up. Also, if I file for bankruptcy without my husband, what happens to my house - which is in both of our names? We've never been late on a mortgage payment

Answer 1

You need to go see a good non-profit credit counsilor. To many variable here to give you a good definate answer.

Answer 2

Well Stuff should only stay on your credit report for 7 years for past due bills, if they aren't public record or tax liens. I would dispute it, Chances are is that it's been transfered around to several different collection companys and that is why that is still there. I used to Work for Washington Mutual, nothing will happen to your house, just the collection activity will stop if your behind, which you aren't. If you do Chapter 13 you can even refinance your house to a lower interest rate while in bankruptcy. If you do Chapter 7 you'll have to wait til the 1st day you out of out of bankruptcy. So that could be an option for you. I've done loans for people with as low as 480 Credit Score. I would just dispute all the payments that I made on time that are showing late on my credit report though experian, equifax, and transunion. Go to FreeAnnualCreditReport.com and Get your free copies of your credit report and do it that way. It's Free that way. In about 30-45 days you'll get something showing what has been updated. If you need anymore help please contact me.

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Answer 3

Basically it is now against public policy for student loans to be discharged in bankruptcy. The reform act in 2005 extended this ban further.

Although you owe the money directly to the college, it could still fall under this ban. You will have to contact a bankruptcy attorney to find out.

Also the Supreme Court has ruled that social security payments can be reduced to repay federally insured student loans, so it looks like you can't make them go away.

Keep up your mortgage payments. When you file you have to reaffirm the debts you want to keep. Reaffirm the mortgage and you will have no trouble with the house.

Credit cousneling is now mandatory before a bankruptcy filing. The counselor will tell you what chapter you can file under. He might also offer advice on how to avoid bankruptcy. But if your sole purpose in filing is to wipe out student debt, I don't think you will be successful.

Answer 4

You can't file bunkruptcy without your spouse. If you file, he goes along for the ride, destroying his credit in the process.

Answer 5

my best guess is that you still have to pay the student loan

you would probably keep the house though, or at least your half of it