Can I put my student loans on a credit card and then declare bankruptcy?

Question

I'm swamped in debt, but have good credit and lots of it. I was thinking about putting my student loans on my credit card (using those handy, low interest checks I get in the mail) and then declaring chapter 7 bankruptcy. Will this work? It seems like a great plan to me. I know it will be on my record for 10 years, but I don't care about that. I'd rather be out of debt completely and then move to another country and start over. Has anyone gotten out of their student loan debt this way?

Answer 1

The most popular solutions to the problem of heavy debt burden is to get a debt settlement or file for bankruptcy. Among these two debt settlement is preferred as it has a relatively less impact on credit report. In this article we assess the benefits and drawbacks of debt settlement.

Debt settlement is a process in which an organization will go to your lenders and negotiate with them regarding your debt. The purpose of the whole exercise is to reduce your debt burden. If a settlement company is good it can get your debt reduced by as much as 50%. This is what a creditor needs and this is the most visible benefit of debt settlement. The amount of the debt is reduced, the repayment plan is made easy and often the monthly installments are spread over a long period. This makes life a lot more easier for the borrower.

However, debt settlement is not without its drawbacks. There are two things to worry about. First, is the cost of debt settlement. Debt settlement companies will charge huge amounts for their services. The usual range is between 10-15% of the debt amount. Paying this much amount upfront can turn your financial situation from bad to worse. Read more from: http://www.credit-card-gallery.com/credit_card_debt_consolodation.html

Answer 2

You actually have a pretty good idea. it would have been perfect back in the 90's. If you can pay it off with your credit cards do that and you might be able to file bankruptcy in teh future. You cannot file bankruptcy on the student loans themselves. However as someone pointed out the laws have changed for bankruptcy, say thank you Mr. Bush! It's a lot harder now.
If I were you I would say consolidate your student loans and get a low interest rates and low payments. shop around for the best company. And what ever they quote you have them send it to you in writing by mail!!! Cause they sometimes say one thing and when you sign up the interest or payment is higher or some bs. By law whatever they quote they have to stick by. What ever you do, don't dont dont let your loans default!!! Been there done that, not fun, You then cannot consolidate and they will try to bully you and demand you pay it all at once. They will threaten to garnish you and may try! As long as you are not in default you have options. it takes at least a year to get out of default and its a year of hell!!!!. As long as you are not in default as for an economic hardship or forbearance. They will postpone your payments usually 6 months to a year. Of course the interest still adds on. But you have the option to pay just the interest or nothing. When its time to repay in a year you will probably be on your feet. If not request it again. I think you can do it maybe 3 or 4 times. Find out. Then make your payments and be done with the clowns. thats my plan.

Answer 3

The laws for bankruptcy have become much more stringent recently. I doubt if you will be able to succeed with that method as cash advances, transfers, etc... are not permitted in either consolidating debt or declaring bankruptcy.

Try to get a forbearance on your student loan ( I think you can do it for up to 24 months) and then consolidate your unsecured debts with a reputable company who will lower your finance charges and your monthly payments.

Answer 4

you could always credit hack for a while until u decide

this basicaly means that you sign up to lots of credit card companys that give like a 6 month interest free period, and when that one finishes you then go to the next, theres like hundred of companies out there so in thoery you could do this with the debt u have for 100 years or so

if i were you read into it + remember everytime you swap cards they charge you a transfer fee, normaly about 2%

Answer 5

Hate to burst your bubble, but deliberately charging up your credit card and then declaring bankruptcy is considered fraud. If you were to do so, having posted your question here could probably be used as evidence against you.

Also, I'm fairly certain that new or recent debt can't be included in a bankrupcty filing.

Answer 6

no longer something wanting loss of life will cancel pupil loans. financial disaster might the two 0 out your credit card debt or placed you on a repayment software, reckoning on the form of financial disaster.

Answer 7

Have you thought about putting your loans on your credit card, which would get you current, then actually paying them off?

Answer 8

You got good advise from your questions. I got one piece of advise that you should also consider. " If you're gonna be a thief, make sure you can retire from it".