Why can't you declare bankruptcy to get out of student loans?

kizzmybutt
kizzmybutt

Why can't you declare bankruptcy to get out of student loans?

That's some bullshit.

Sharpcharm
Sharpcharm

You also can't go to jail for not paying loans

We have different definitions of bullshit

TurtleCat
TurtleCat

@kizzmybutt

Just graduated
don't have any money, spent everything on college
still had to take out loans
no assets or savings to lose from filing for bankruptcy
surewhynot.jpg

Who would keep their loans if you could just discharge them this easily? Everyone would do it, the student loan market would collapse, millions of people would lose access to college.

Dreamworx
Dreamworx

@TurtleCat
Why do people not declare bankruptcy if they have credit card debt

Nude_Bikergirl
Nude_Bikergirl

You actually could at one point, but they realized that the student loan scam doesn't work if you allow the goy..guys to remove it through bankruptcy.

You can't drink or own a gun till you're 21, but you can take up to 120k loan out for school when you're 18

Garbage Can Lid
Garbage Can Lid

@Dreamworx
I think they come and steal your property at pennies on the dollar if you do that.

Booteefool
Booteefool

@kizzmybutt

Couldn't you just play the Good Goy bit for a while, get decent credit, transfer the loan balances to credit cards and then bail out via bankruptcy?

Evil_kitten
Evil_kitten

@kizzmybutt

Agreed.

The current academic loan system is about as fucked as the housing loan system used to be.

takes2long
takes2long

@Dreamworx
Because it'll fuck your credit for ten years, and they can take things like your home or other property of value to get the creditors at least some of their money back.

If you're fresh out of school, you don't have any assets for them to seize, the only consequence is the impact on credit.

Burnblaze
Burnblaze

@Booteefool
no. i don't know where to find the law, but i know that this is illegal. if you go to a judge to file bankruptcy, this will be something he checks for and you will get fucked.

likme
likme

I was under the impression that student loans didn't affect your credit, for better or for worse. Thus, bankruptcy does not affect the outstanding loan, no?

Personally I don't have student loans, but I know people who basically pay 1 dollar a month ad infinum because never paying them off apparantly doesnt really have any negative consequences whatsoever, and in 50 years all lenders will basically need to cut bait anyhow.

Anyone know if any of that is true? Again: Just parroting what collegefags have told me so I wont be shocked if it's BS

StrangeWizard
StrangeWizard

@likme
Nope.
You can defer payment of them out the ass (and that's years, to be sure), but not indefinitely.

Boy_vs_Girl
Boy_vs_Girl

@Sharpcharm
the prison industry jew has spoken, need more goyim for your slave farm? :^)

PackManBrainlure
PackManBrainlure

@kizzmybutt

Because the generation before us did that.

Carnalpleasure
Carnalpleasure

@PackManBrainlure

But sometimes I like to pull out personal loans and then declare bankruptcy.

Burnblaze
Burnblaze

@Garbage Can Lid
Many states define what creditors can seize. Often prohibiting the seizure of your home.

idontknow
idontknow

Learned about it in law school. Guy in the early 90's went to some ivy league law school, took out loans to cover his tuition, and a fuckton of private loans and lived large in a condo and got a new car. Graduated law school, passed the bar, then immediately filed for bankruptcy, claiming he had no income and couldn't pay it back. Got before the judge, judge said that it was obviously premeditated, and he had no intention of ever paying it back, denied his bankruptcy, and it became case law adopted into federal law.

Poker_Star
Poker_Star

@kizzmybutt
how do you like that refund check after doing your taxes?

I heard if you don't pay your student loans you just never get to see a refund check ever again.
but thats all they do. and that credit score thingy.

Firespawn
Firespawn

@Poker_Star

And they can seize up to 30% of your paycheck, taken right out of your check before taxes, but tax you the full amount.

DeathDog
DeathDog

@Firespawn
and you SSI if you make it to retirement without paying

GoogleCat
GoogleCat

@kizzmybutt

Can't let that bubble pop op. Debtor's prison will be making a come back if it ever does.

Supergrass
Supergrass

@idontknow
fucking lawyers ruining it for everyone

Skullbone
Skullbone

@Carnalpleasure
Say someone had a long term girlfriend with shitty student loan.

If the house she lived in was in your name, and car she drove, and everything but her clothes were technically yours.

Would it be possible for her to pull out a shit ton of loans and rack up a bunch of credit card debt and declare bankruptcy?

All the assets she uses are technically yours and she doesn't own anything for them to take.

And your not married because marriage is so 2001

WebTool
WebTool

@Skullbone
pull out a shit ton of loans

Doesn't happen. They only let 17-18 year olds take out 70k in loans.

CouchChiller
CouchChiller

@WebTool
only if it's for muh education

Gigastrength
Gigastrength

You can. Bankruptcy courts are some of the most powerful in the country.

However. what happens in practice is the Government can't allow precedent for failure, b/c politics. So they can never say it failed barring exceptional situations like those that trigger the death and disability clauses.

What ends up happening is a de-facto settlement, wherein buried in the math a 100k loan gets reduced to 300 payments of 25$ or some such bullshit that you'd be foolish to fight. 100k to $7500 which is are such generous terms & beyond the call of a debt servicer that to take that to court the judges settlement would be much higher.

But you get a disproportionate amount of people not throwing the debt into the bankruptcy petition b/c of this myth that you don't have much history. You should throw it in your case and force a generous settlement agreement.

Flameblow
Flameblow

@Sharpcharm

Yes actually you can go to jail for not paying your student loans.

This is how it goes

1. Default on student loan
2. Dept of Ed takes you to court.
3. Judge garnishes your wages
4. Your say screw it, Ill quit my job. Fuck them
5. You are now in violation of court order.
6. Prison

You also can not renew or apply for professional licenses while in loan default. That is everything from hair dressers, to pharmacy techs, to doctors and truck drivers

SniperWish
SniperWish

@kizzmybutt
because stealing is a crime.
defaulting on any debt is stealing.

@Gigastrength
what a load of bullcrap.
only scenario they will let you default on a debt is if you already payed back the original loan but still owe a lot of money (sometimes even more than original sum) and you can't pay it back. then they will settle as it is in everyones best interest.

you can buy insurance on being unable to pay back your loan if there is a possibility so if you didn't and you can't then you were retarded scum hope they sell your kidneys to pay for the loan.

VisualMaster
VisualMaster

@Firespawn
@DeathDog

You also become ineligible for any government assistance such as welfare, medicare/medicaid, SS disability, etc

TechHater
TechHater

@Skullbone

Technically yes. This is why nigs have everything in their "mommas name"

However with a cohabiting female, you have to be careful as states set common law marriage time frames. In Illinois it is 6 years. If you live with a female longer than 6 years in IL, the state automatically declares you married, in which case your assets become hers, and vice versa

eGremlin
eGremlin

@SniperWish
a 25 year interest free loan isn't a settlement in your favor.

where can you buy such insurance?

@DeathDog
income based repayment is 25 years only people this applies to is people like those obama moms

BinaryMan
BinaryMan

Currently have a $2,500 dollar loan from my AA at a community college. I could easily pay it off right now.

Should I pay it off, or just keep it deferred throughout the rest of my degree?

Fuzzy_Logic
Fuzzy_Logic

@BinaryMan
interest rate, credit score, and do you have any plans to buy a house/business in the near term?

Nojokur
Nojokur

@kizzmybutt
Back in he early-mid 2000s, doctors would walk out of graduation from medical school and immediately declare bankruptcy

The banks would take everything these poor former medical students had and trash their credit of course, but it didn't really affect these doctors because they knew they would make enough cash to live a cash only lifestyle for seven years and then get their credit back

What the banks took from the doctors didn't come close to wiping their hundreds of thousands of dollars of debt, so Congress stepped in and made it illegal to discharge ALL student loans with bankruptcy

Sir_Gallonhead
Sir_Gallonhead

@eGremlin
25 year
jesus
i can repay my student loans from my pocket if i choose to they gonna be gone in a year.
who the fuck does this?

Spamalot
Spamalot

@Nojokur
It only takes two years before you can get credit again.

@Sir_Gallonhead
people who don't understand TVM, non-stem with shit jobs, anyone making 25k or less

SomethingNew
SomethingNew

@WebTool
we're older
@TechHater
nice, in Missouri, banned that shit in the 1920's

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