Bankruptcy rant....l can't comprehend how...

auggiedawg · Jan 22, 2014

Anyone in the world can file bankruptcy and basically within 7 years it is like nothing ever happened. But if I want to file bankruptcy on a measly loan around 25k - 50k ,I can't file bankruptcy....no questions asked...no way !!!!! They will take every penny from garnishing your wages if they have to......I truly don't understand the good ole USA sometimes. Just doesn't seem fair in any shape, way, or fashion.

Recent bankruptcy filings:

AND YOU MEAN TO TELL ME I CANT FILE BANKRUPTCY ON A MINUSCULE STUDENT LOAN ???????????? WTF??????

KODAK - 950 million
HOSTESS - 2nd time this decade
SAAB motors
AMERICAN AIRLINES ..parent company
WASHINGTON MUTUAL
GENERAL MOTORS
CHRYSLER
LEHMAN BROTHERS
WORLDCOM
ENRON
1. Burt Reynolds – chapter 11 in 1996 after owing more than 8 million in debts
2. Lorraine Bracco – filed after long custody battle
3. Mickey Rooney – 1986 filing – first bankruptcy was in 1962
4. Kim Basinger – filed due to $8 million judgment after backing out of a movie
5. Jerry Lewis – filed in the 70's after losing stage bookings
6. Gary Coleman – 1999 bankruptcy
7. Redd Foxx –chapter 11 after owing millions to IRS
8. Mike Tyson – filed after blowing $300 million foolishly
9. Morton Downey, Jr. – filed 5 bankruptcies
10. Larry King – filed in 1971 and again in 1978
11. Gloria Vanderbilt – 1938 bankruptcy
12. John Wayne
13. Toni Braxton – filed in 1998
14. Francis Ford Coppola – filed in 1999
15. David Crosby – filed in 1985
16. Mick Fleetwood – filed in 1984
17. Dorothy Hamill – filed in 1996
18. Marvin Gaye – filed in the 70's
19. M. C. Hammer – filed in 1996
20. Merle Haggard – filed in 1993
21. Chaka Kahn
22. Jackie Mason – filed in 1983 after bad investments
23. Ted Nugent
24. Tom Petty – filed in 1979
25. Debbie Rooney – filed in 1962
26. Anna Nicole Smith
27. Cindy Lauper – filed in 1981
28. Latoya Jackson – filed in 1995
29. Wayne Newton – filed in 1992

Donald Trump, financier
Michael Jackson, singer
Wolfgang Amadeus Mozart, composer
Kim Basinger, actress
John Wayne, actor
Mike Tyson, boxer
Mark Twain, humorist
Burt Reynolds, actor
Thomas Jefferson, 3rd President of the United States
Abraham Lincoln, 16th President of the United States
Ulysses S. Grant, 18th President of the United States and Civil War general
Harry S Truman, 35th President of the United States
Gary Coleman, actor and star of TV show Diff'rent Strokes
MC Hammer, rap singer
Willie Nelson, country singer
Lorraine Bracco, star of The Sopranos
Charles Goodyear, founder of the Goodyear Tire Company
PT Barnum, circus promoter
L. Frank Baum, author of "The Wonderful Wizard of Oz"
Oscar Wilde, playwright
Jerry Lee Lewis, rock singer
Henry Ford, founder of Ford Motor Company
Johnny Unitas, football player
Wayne Newton, "Mr. Las Vegas"
Debbie Reynolds, actress (and mother of Carrie Fisher, Princess Leia of Star Wars)
Walt Disney, creator of Mickey Mouse
Richard Wagner, opera composer
Mick Fleetwood, member of rock group Fleetwood Mac
Merle Haggard, country singer
Dorothy Hamill, figure skater
Larry King, talk show host
Bowie Kuhn, former baseball commissioner

Millions of Americans, including (based on the numbers) at least three people you know personally — even if you don't realize it

CHOPTALK · Jan 22, 2014

I dont understand your point?

Are you saying you want a license to not have to pay your student loan?

PerryHotter · Jan 22, 2014

Why cant you file? I filed about 3 years ago after a messy divorce because of about 25k and it was the best thing for me that I could have done. As far as waiting years to get my credit back, NOT SO, 2 months after I discharged I Bought a brand new 20K Honda ( at a decent interest rate with only 1500 down) and now 3 years later i have pretty nice credit. I was shocked at the ease of getting whatever credit I needed.

Acebb · Jan 22, 2014

AND YOU MEAN TO TELL ME I CANT FILE BANKRUPTCY ON A MINUSCULE STUDENT LOAN ??

:>(

Since your student loan is subsidized by taxpayers, no.

It isn't comparable to Gary Coleman or Toni Braxton. Different creditors.

mountain · Jan 22, 2014

You owe it so pay the damn bill.

Banks are a powerful lobby. In 2005 the bankruptcy laws changed, making it more difficult to file. Pay the damn bill, it will cost you a couple grand to file.

http://www.bankruptcyforeclosureblog.com/bankruptcy/2007/11/

Murphy8276 · Jan 22, 2014

just ask for cheaper payments if you cannot afford it or if you are jobless you can get a deferment altogether for a while.. bottom line is you will eventually have to pay it back

-murph

TopShelf11 · Jan 22, 2014

Wow, look at all the bankruptcy during the Clinton years!

CoachCB · Jan 22, 2014

$25K in student loans can't be too steep, what $400/month?

It seems if you're going to file for bankrupcy you'd go all-in, max out every credit card you have, live it up, etc.

I'm fortunate to be gainfully employed and live well within my means. I feel for you being in a tough situation. Financial problems are usually a result of poor financial decisions.

devocr · Jan 22, 2014

Vince Young files for bankruptcy

Add Vince to the list:

http://espn.go.com/nfl/story/_/id/1...-texas-longhorns-quarterback-files-bankruptcy

HOUSTON -- Former NFL and University of Texas quarterback Vince Young has filed for Chapter 11 bankruptcy protection.

The petition was filed last week in a Houston federal bankruptcy court, listing Young with estimated assets between $500,001 and $1 million and liabilities between $1,001,000 and $10 million. The Houston Chronicle reports no specific details on Young's assets and liabilities were immediately available.

The 30-year-old Young is fighting two lawsuits stemming from a $1.8 million loan obtained in his name during the 2011 NFL lockout.

A court has granted a judgment against Young to Pro Player Funding, a New York company that made the loan.

Pro Player Funding has made several efforts in a Harris County state district court to enforce collection of the judgment, but those efforts remain pending.

snoop · Jan 22, 2014

- Would you be able to maintain a minimum standard of living when you're forced to repay the loan?

- Is the hardship significant?

- Have you missed any payments in the last 5 years? If you didn't miss any payments, it shows your good faith efforts of repaying the loan, it looks good to the judge.

If you can prove to the bankruptcy court that continuing to repay student loan would cause undue hardship, they will discharge your loan. Keep in mind that discharging student loan from bankruptcy is very rare, but it can be done.

GL.

CHOPTALK · Jan 22, 2014

snoop said:
- Would you be able to maintain a minimum standard of living when you're forced to repay the loan?

- Is the hardship significant?

- Have you missed any payments in the last 5 years? If you didn't miss any payments, it shows your good faith efforts of repaying the loan, it looks good to the judge.

If you can prove to the bankruptcy court that continuing to repay student loan would cause undue hardship, they will discharge your loan. Keep in mind that discharging student loan from bankruptcy is very rare, but it can be done.

GL.

Why not just get a loan for 25k and pay off the student loan with the 25k loan then discharge the 25k loan with bankruptcy?

$tinky · Jan 22, 2014

auggiedawg said:
Anyone in the world can file bankruptcy and basically within 7 years it is like nothing ever happened. But if I want to file bankruptcy on a measly loan around 25k - 50k ,I can't file bankruptcy....no questions asked...no way !!!!! They will take every penny from garnishing your wages if they have to......I truly don't understand the good ole USA sometimes. Just doesn't seem fair in any shape, way, or fashion.

Recent bankruptcy filings:

AND YOU MEAN TO TELL ME I CANT FILE BANKRUPTCY ON A MINUSCULE STUDENT LOAN ???????????? WTF??????

KODAK - 950 million
HOSTESS - 2nd time this decade
SAAB motors
AMERICAN AIRLINES ..parent company
WASHINGTON MUTUAL
GENERAL MOTORS
CHRYSLER
LEHMAN BROTHERS
WORLDCOM
ENRON
1. Burt Reynolds – chapter 11 in 1996 after owing more than 8 million in debts
2. Lorraine Bracco – filed after long custody battle
3. Mickey Rooney – 1986 filing – first bankruptcy was in 1962
4. Kim Basinger – filed due to $8 million judgment after backing out of a movie
5. Jerry Lewis – filed in the 70's after losing stage bookings
6. Gary Coleman – 1999 bankruptcy
7. Redd Foxx –chapter 11 after owing millions to IRS
8. Mike Tyson – filed after blowing $300 million foolishly
9. Morton Downey, Jr. – filed 5 bankruptcies
10. Larry King – filed in 1971 and again in 1978
11. Gloria Vanderbilt – 1938 bankruptcy
12. John Wayne
13. Toni Braxton – filed in 1998
14. Francis Ford Coppola – filed in 1999
15. David Crosby – filed in 1985
16. Mick Fleetwood – filed in 1984
17. Dorothy Hamill – filed in 1996
18. Marvin Gaye – filed in the 70's
19. M. C. Hammer – filed in 1996
20. Merle Haggard – filed in 1993
21. Chaka Kahn
22. Jackie Mason – filed in 1983 after bad investments
23. Ted Nugent
24. Tom Petty – filed in 1979
25. Debbie Rooney – filed in 1962
26. Anna Nicole Smith
27. Cindy Lauper – filed in 1981
28. Latoya Jackson – filed in 1995
29. Wayne Newton – filed in 1992

Donald Trump, financier
Michael Jackson, singer
Wolfgang Amadeus Mozart, composer
Kim Basinger, actress
John Wayne, actor
Mike Tyson, boxer
Mark Twain, humorist
Burt Reynolds, actor
Thomas Jefferson, 3rd President of the United States
Abraham Lincoln, 16th President of the United States
Ulysses S. Grant, 18th President of the United States and Civil War general
Harry S Truman, 35th President of the United States
Gary Coleman, actor and star of TV show Diff'rent Strokes
MC Hammer, rap singer
Willie Nelson, country singer
Lorraine Bracco, star of The Sopranos
Charles Goodyear, founder of the Goodyear Tire Company
PT Barnum, circus promoter
L. Frank Baum, author of "The Wonderful Wizard of Oz"
Oscar Wilde, playwright
Jerry Lee Lewis, rock singer
Henry Ford, founder of Ford Motor Company
Johnny Unitas, football player
Wayne Newton, "Mr. Las Vegas"
Debbie Reynolds, actress (and mother of Carrie Fisher, Princess Leia of Star Wars)
Walt Disney, creator of Mickey Mouse
Richard Wagner, opera composer
Mick Fleetwood, member of rock group Fleetwood Mac
Merle Haggard, country singer
Dorothy Hamill, figure skater
Larry King, talk show host
Bowie Kuhn, former baseball commissioner

Millions of Americans, including (based on the numbers) at least three people you know personally — even if you don't realize it

Pay ur shit and STFU

snoop · Jan 22, 2014

CHOPTALK said:
Why not just get a loan for 25k and pay off the student loan with the 25k loan then discharge the 25k loan with bankruptcy?

Get a loan from who? You?

Haha.

auggiedawg · Jan 22, 2014

Obviously I'm talking about a student loan. I do pay it back at the rate of $375/month. I'm just curious as to why others can file bankruptcy for millions upon millions but a student loan u can't. Just seems weird

auggiedawg · Jan 22, 2014

Nice input. Hope it didn't take u too long to come up with that douchebag.

Again, I do pay my loan, but just was curious as to the weird discrepancy on the 2.

$tinky said:
Pay ur shit and STFU

Ladeda · Jan 22, 2014

Student loans are not eligible. They used to be dischargable but that was changed. I don't know the official law preventing this but I was told by an attorney friend the reason was it was too easily abused.

Mainly by medical school and law school students whom easily had many hundreds of thousands in debt upon finishing. They would then claim bankruptcy, have the debt removed then start fresh making big salaries.

Thats just the gist of it.

auggiedawg · Jan 22, 2014

Yea,heard that too.....but what's the difference in a regular non-student bankruptcy? Seems pretty easily done and widely abused. I mean, seems most get in trouble and ..."well, I will just file for bankruptcy". Happens at the rate of 3,500 bankruptcy filings per day in 2012.

Business and Non-Business Filings
Years Ended September 30, 2008-2012

Year Business Non-Business Total
2012 42,008 1,219,132 1,261,140
2011 49,895 1,417,326 1,467,221
2010 58,322 1,538,033 1,596,355
2009 58,721 1,344,095 1,402,816
2008 38,651 1,004,342 1,042,993

Ladeda said:
Student loans are not eligible. They used to be dischargable but that was changed. I don't know the official law preventing this but I was told by an attorney friend the reason was it was too easily abused.

Mainly by medical school and law school students whom easily had many hundreds of thousands in debt upon finishing. They would then claim bankruptcy, have the debt removed then start fresh making big salaries.

Thats just the gist of it.

JasonBiggz · Jan 22, 2014

You can discharge unsecure debt such as credit cards with ease, but student loans are a much tougher case. However, they can be discharged if you can prove you can't maintain a minimal standard of living. You'd basically have to be at the poverty level. Unless you're a teacher in a low-income school or work in public services, not many other options other than paying it off.

snoop · Jan 23, 2014

Ladeda said:
Student loans are not eligible. They used to be dischargable but that was changed. I don't know the official law preventing this but I was told by an attorney friend the reason was it was too easily abused.

Mainly by medical school and law school students whom easily had many hundreds of thousands in debt upon finishing. They would then claim bankruptcy, have the debt removed then start fresh making big salaries.

Thats just the gist of it.

That's not true. It's difficult to have student written off in bankruptcy but it can be done.

Your example fails "good faith" test right off the bat. No judge would allow you to write off the loan when you have yet to make any payments.

MattyMatt · Jan 23, 2014

Student Loans is the new Financial Bubble.

Welcome to my World.

Bankruptcy rant....l can't comprehend how...

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