Has anyone here file for bankruptcy?

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btantra

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I have a huge college loan bill that I can no longer pay its minimum payment and those collectors are starting to pestering me... I have heard about filing for bankruptcy, but is this a good option to take? Have anyone had this problem before? Has anyone file for bankruptcy?

Any help or advice will be nice
 
Try a debt consolidation service first, like Consumer Credit Counselling Service. They will most likely be able to work with your creditors and come up with a payment plan that you can live with. Don't file for bankruptcy before exploring this option.
 
first advice, get off this site because you dont need to be spending any more money, second advice, call a credit counsoler and see what they can do for you (its not hard to find a free one as many of them are community service organizations), if bankruptcy is your final option, you can do it, but i would not use it as an easy way out.. it scars your credit record for life and you will VERY likely never be issued another credit card, loan, cash advance, or even some insurance policies because people do not feel that you will pay them...
 
I don't think that you can unload a college loan, even if you file for Bankruptcy. There are certain loans which you have to pay no matter what.
 
Can the loan company sue me and come to my place trying to confiscate any valuable property of mine? What about after I file bankruptcy? Can they still do that?
 
[quote name='btantra']I have a huge college loan bill that I can no longer pay its minimum payment and those collectors are starting to pestering me[/quote]


Yep....and I'm tkaing out a loan to go to college in the fall.......great.....

On a side note, if I'm not mistaken, when you file for a Straight 7, your assets are liquidated to your creditors. So you should sign over any valuables to your friends as "gifts".
 
Unfortunately, I did file for BK about 3-4 years ago. Although everything worked out well for me, purchased a new car and a new home 3 months ago, I would only recommend it as a last alternative. You will get credit to buy cars, homes, etc. but you will pay in interest because it is usually alot higher due to your high risk. Good Luck
 
You should avoid bankruptcy at all cost short of becoming homeless. It may seem awful now but having that black cloud following you around will affect your life for the next decade. Just about everybody I've known who did the bankruptcy thing regretted it later.
 
I thought bankrupcy only stayed on your record for 7 years. They only take thinks that they can sell off, ie house or car. If you still have most of the balance on them, they wont take them. Your cant file bankrupcy if you intentionally racked up the bills. Like you maxed out all of your credit cards buying video games. I would talk to a lawyer.
 
[quote name='BigNick']I thought bankrupcy only stayed on your record for 7 years. They only take thinks that they can sell off, ie house or car. If you still have most of the balance on them, they wont take them. Your cant file bankrupcy if you intentionally racked up the bills. Like you maxed out all of your credit cards buying video games. I would talk to a lawyer.[/quote]

The effects are more far reaching than the official rules suggest. One of the most important possessions an adult has is a good credit record. With that all things are possible. Bankruptcy puts you back at zero for that . While the bankruptcy itself may disappear from your records after the prescribed period there will still remain a mysterious period in which you persona non grata to creditors. This spells out your past offences without saying it overtly.

It can be like trying to cover up a stretch in prison.
 
But if you're so far in debt and your credit record is terrible anyway, then does it really matter? My mentally disabled brother will probably have to file for bankruptcy here soon.
 
Reality's Fringe]But if you're so far in debt and your credit record is terrible anyway said:
He offered no indication his credit was shot, only of the debt. Severe lifestyle curtailment can possibly still rescue the situation.

Selling off stuff now may seem like disaster but years from now if your trying to get a loan for something truly important like a house you'll rethink your attachment to the toys.
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I'm speaking in reference to someone whose credit is indeed shot to hell. I'm aksing because my borderline MR brother ws in a very abusive relationship with a woman who basically treated him as a horse and meal ticket. She ran up huge debts in his name, and now he's backed into a corner. He has an IQ of about 75 or so, which is basically the point where he's not able to care for himself but there can't be any public assistance for him. My mother is at the end of her rope and I suggested bankruptcy, so I was just wondering if things are that bad, then does it really matter?
 
I am in the middle of some serious financial problems. If I said how much I owed most of you would puke.

Anyways...fear not.

1. DO NOT PAY THEM.
2. DO NOT FILE BANKRUPTCY
3. DO NOT CALL A DEBT CONSOLIDATION SERVICE LIKE CCC
4. Wait until you are delinquent (3 months) and then offer asettlement to them. You can usually get them very low and even on a payment plan.

http://www.edebtfree.org/debt-settlement.htm

I love this site. In particular read this:

Do you need financial help? financial problems and credit cards go hand in hand, find out how much credit cards are really costing you.

How many times have you been told, you "must protect your credit rating at all costs". If you damage your credit record, that's it, your life is over. Credit is something that most people have many misconceived ideas about and a fair amount of what I'm about to tell you will probably go against normal "conventional thinking". So, if you feel that reconsidering your current beliefs is not something you are willing to do, just skip this page.

One of the first things to realize is that credit is not there to help you in any way, shape or form. It is not there to improve your life or make things better for you. It's not there to help you furnish your first house or buy your first car. It's there for one reason, to make money for the credit card company and it does this surprisingly well by draining you of all your hard earned money for many, many years to come. Credit is a well designed and carefully laid trap that makes the credit card companies billions of dollars every year. Remember that the credit card companies do not make any money unless you are in debt and it's the creditor's intention that once you're in debt that you stay that way for the rest of your life.

What most people don't realize is that credit (debt) is a product that is being sold to you just like any other product. You understand that when you walk into a car dealership that someone is most likely going to try and sell you a car, or when you go into a clothing store a salesperson is going to try and sell you a new outfit. Well the product that banks are selling you is not primarily a checking or savings account. It's debt and the financial problems that go with it. The main goal of all banks is to issue as much money as possible. This comes in many forms; credit cards, mortgages, car loans, student loans, home improvement loans and many other types of secured and unsecured debt instruments.

Credit card companies make over $60 billion in profits every year, of which around $19 billion comes from late and over limit charges. That's a lot of money! Do you think that they might want to protect and expand this very nice source of income? I think so. Billions of dollars are spent every year trying make the average credit consumer believe that what they are doing is good for both you and the economy.
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[quote name='btantra']I have a huge college loan bill that I can no longer pay its minimum payment and those collectors are starting to pestering me... I have heard about filing for bankruptcy, but is this a good option to take? Have anyone had this problem before? Has anyone file for bankruptcy?

Any help or advice will be nice[/quote]

My advice, btantra, is to try and see if you can get a deferment. There's some information here

A deferment can postpone payments, provided they fall under certain condition. I'm not sure what your situation is, but if you can get a deferment, you can defer for up to 3 years (some reasons are for Unable to find full-time employment and Economic hardship). One possible problem is that you need to keep making payments until you receive confirmation of the deferment. If I'm not mistaken though, I think with a deferment there's no interest that accrues.

You could also apply for a forbearance (info about it here. During a forbearance payments are reduced or maybe even posponed. Unfortunately, during a forbearance, interest continues to accrue, unlike a deferment, but if it can lighten the load a little and help you get back on your feet, then I'd say it's worth it.

Check this stuff out. It's definitely worth a try. I'd say don't resort to bankrupcy until it's the absolute last resort. I'm sure you'll be able to work something out. Don't get discouraged. Good luck.

EDIT: I'm not sure where you got your loans, but this stuff deals with federal aid. I'm not sure if any of this applies to you, but I thought I'd pass it along anyways. :?
 
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