If a person has so many student loans that they must file bankruptcy, will that effect them on how good of a job they can get?
2007-08-12 16:09:52 · 12 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Federally backed student loans cannot be discharged in bankruptcy. You're going to have to pay those loans. They don't go away.
Bankruptcy would impact employment, especially if you're looking for a position handling money or budgets or other financial aspects.
2007-08-12 16:16:45 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
Yes. Many employers now check applicants’ credit, especially if the applicant will be handling money or any financial information. Employers hire people who appear to be responsible.
Have you checked into getting the payments on your student loans deferred until you can get a decent job? Also, see if you can get the payments lowered.
What seems like a huge debt to you now is going to seem like small change in ten years. But the bankruptcy will affect your credit for at least ten years. It is a very bad way to start out. It will dog you every step of the way, from employment, to the cost of car insurance, and it will kill you when you go to buy a house (both the bankruptcy and not paying your student loans). A bankruptcy at this time in your life can be disastrous.
If you can’t get the loans deferred or modified, take on a second job until you get a job with a salary that covers your bills. Tough it out. It will be worth it.
Best of luck to you,
Barbara
www.therealestatebirddog.com
2007-08-12 23:25:23 · answer #2 · answered by realestatebirddog4 2 · 0⤊ 0⤋
Under the new bankruptcy laws you have to pay student loans and credit card debt, you can not get them discharged. The banks and credit card issuers wrote the new bankruptcy laws and made them debts you must pay no matter if you file bankruptcy.
2007-08-12 23:22:00 · answer #3 · answered by redd headd 7 · 0⤊ 0⤋
It may, more and more employers are pulling credit reports before hiring someone. Also, many federally insured student loans cannot be discharged in bankruptcy. I believe you can consolidate student loans and possibly get lower payments. There are also circumstances under which you can defer payment on them, but you may have trouble with bankruptcy.
2007-08-12 23:16:02 · answer #4 · answered by Don K 2 · 0⤊ 0⤋
Student loans aren't covered by bankruptcy. Get a second job.
2007-08-12 23:14:10 · answer #5 · answered by Anonymous · 0⤊ 1⤋
I dont think student loans are covered by filing bankruptcy unless they are over 6 years old, I believe. For more infomation, go to http://www.legalhelpers.com it is a very resourceful site.
2007-08-13 16:19:15 · answer #6 · answered by Amira 2 · 0⤊ 0⤋
If you choose an employer that does a credit check you probaby won't be able to get the job because of the bad credit...but it depends on the employer...if you are filing due to student loans and not due to enormous credit card debt you might have a shot.
2007-08-12 23:51:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋
i would think so considering that they consider bankruptcy non paymeny of loans. When they do that if you graduated you lose the degree. It would be like never going to college
2007-08-12 23:14:33 · answer #8 · answered by ladyfatale01 2 · 0⤊ 0⤋
Yes it could. Be careful before you file for bankruptcy.
2007-08-12 23:13:49 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Some Employers will be giving that a consideration when hiring someone. It shows how responsible that person is.
2007-08-12 23:15:35 · answer #10 · answered by Brian Sanders 5 · 0⤊ 0⤋