Tag Archives: StudentLoans
Bankruptcy attorneys are used to answering common questions from potential clients. Questions about the effect of bankruptcy on credit scores, employment, homes and property repossession are very common. However, another question people ask is whether filing for bankruptcy would have any effect on their student loans. It is extremely difficult to file for bankruptcy on student loans, but it is not impossible. You would have to meet very specific criteria. The bankruptcy court would require you to show that repaying the loans would pose an “undue hardship” on you or your dependents (if you have any). Different courts use different tests to determine what constitutes undue hardship. If the court evaluated your case with the original Brunner test, it would consider factors such as: Whether you could maintain a minimal standard if living if you were forced to repay the loans. Whether you had made a good faith effort to…
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The greatest deterrent to starting one’s own business is likely the question of funding. Following a small business idea requires capital, a commodity that few entrepreneurs have when starting out. With this being the case, they look to outside sources for funding. Sources such as family, friends, and, eventually, angel investors. Let’s go into more depth about what this process looks like, for each source. Sources for Funding Your Small Business Idea Family and friends – While this can be the easiest place to look to for funding, be careful. You don’t want to unknowingly take advantage of the love your friends and family have for you by tying them to a failing business idea. If your friends feel like you used them for money, it could irreparably damage your relationship. Small business loans – Despite popular belief, there are many organizations who are interested in lending to small businesses….
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Student loan debt is extremely hard to stay on top of due to high interest and even higher principles, but paying off student loan debt with a credit card is often a bad idea. More often than not, if you pay off a student debt with a credit card prior to filing Chapter 7 bankruptcy, that debt will not be discharged. Credit card debt is an unsecured debt, which means that it is generally counted as a dischargeable debt when you file for Chapter 7 bankruptcy. However, there are some cases when credit card debt will be deemed nondischargeable, for example: If you commit bankruptcy fraud You paid secured debt off with unsecured debt Cash advances Student Loans Are Usually Not Dischargeable Student loans cannot be discharged by Chapter 7 bankruptcy unless you can prove extreme hardship, which is very hard to do. This makes it tempting for people to…
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