Question by majax79: Why are private student loans only loan protected?
In Feb 2008 the financial companies sent lobbyist to say that it would make it extremely hard to get a private loan if this was enacted. Nobody is giving private student loans anymore anyways. So that argument doesn’t work.
Why are private student loans not allowed to be written off in chapter 7 bankruptcy? It seems to be the only loan type that isn’t.
Also, it’s the only one without statue of limitations. Seems to be alot of protection for these companies.
Best answer:
Answer by Lisa L cause their private and only that student can only use it
How To Clear Your Debt Through Bankruptcy Student Loans?
Most student loans that are given by governments and which cannot be easily paid back may not always be rid off even through filing bankruptcy student loans, and the only option open to such a defaulting student is proving considerable financial hardship which in it is often quite hard to prove. However, if you still want to file bankruptcy student loans, you need to prove that you are unable to pay off your student loan either according to repayment schedule, or in the coming years, and under such circumstances you need to make what is called good faith effort, which means not trying to lie to creditors, and that in spite of your best efforts, you still do not have enough funds to pay off your loan.
For those with a large student loan bankruptcy can help eliminate other unsecured loans freeing money to help off the student loans. Additionally, since the government eliminated discharging these loans through bankruptcy, other safeguards have been put into place, such as the amount of a person’s net income that can be taken through garnishment for a student loan. Depending on the circumstances, there may be some relief available for those with excessive loan balances.
Today, the person claiming Chapter 7 bankruptcy has to show that an undue financial hardship will result if the loans are not discharged. As in many cases with bankruptcy and student loans make up a large portion of the individual’s debt, a portion of the loan may be discharged by the judge, but most of the loan will remain a legal debt. In other cases in bankruptcy and student loans are reviewed, if the loans are found to have been sold repeatedly to other lenders and with changing interest rates it is difficult to determine an exact balance, some or all of the loan may be discharged.
The fact is that according to some estimates, it is believed that only ten percent of a borrower’s pay can be used to pay off his or her student loan, which means that you should also discuss with the person or company that lent you the money to come up with a means that will help you out of your predicament. It is common to state certain reasons when filing bankruptcy student loans and these include the school or institution being closed, and also death of the borrower. Nevertheless, filing for bankruptcy student loans does not mean that financial aid administrators can refuse you a new loan because of a previous bankruptcy; though, your history of credit following your bankruptcy can decide whether you get a fresh loan or not.
Under the provisions of Chapter 13 bankruptcy, a debtor can arrange to have all of their unsecured and secured debt become part of a repayment plan through a court trustee. In these cases of bankruptcy and student loans are included, the person must meet specific criteria, for example showing they have sufficient income to make the monthly payments determined by the court to pay off the total debt within five years.
Chapter 13 Bankruptcy Is An Option
To get relief from aggressive collection actions on a student loan bankruptcy through what is called Chapter 13 may be an option. Provided the person filing for protection meets the criteria, it is possible to have a court trustee oversee loan repayments, offering bringing the person’s monthly payment schedule more in line with their income. Over the life of a chapter 13 bankruptcy, if the person’s income increases, the debtor’s can petition the court for larger payments to be made.
The best option open to you when you are planning on filing bankruptcy student loans is to consult either the lender or the administrator in your school that handles student loans as well as websites of concerned authorities to find a workable solution for your financial woes.
Keith Lee has almost filed for bankruptcy but managed to come back stronger and richer.
To learn more about Bankruptcy Student Loans,
visit http://www.1StopBankruptcyGuide.com/Bankruptcy-Student-Loans.html
Tough economic times turned out to be too tight for Silver State Helicopters in Sacramento County. The business filed for Chapter 7 bankruptcy on Monday. Video Rating: 5 / 5
Quincy, MA (PRWEB) January 23, 2006
In recent years, as much as 5% of home equity tapped by homeowners has been used to fund higher education costs, according to the Consumer Bankers Association. [1] Low interest rates on home equity loans combined with skyrocketing home valuations has made equity accessible and affordable. That may change as the housing market begins what many experts have called the “popping of the housing bubble”.[2]
With prices declining and interest rates rising, many families who borrowed against equity to pay for college education costs may find themselves with fewer equity-based options in 2006. Fortunately, alternative student loans may be able to fill the gap left by a decline in available equity.
Christopher S. Penn, director of www.AlternativeStudentLoan.com, said, “Here in the Boston area, we’re seeing housing price cuts of enormous proportions, up to 20% of the sale price[3], driving down local home prices. Combined with 13 consecutive increases in the Prime Rate (based on the Federal Funds Rate), equity for education in 2006 may be less affordable for borrowers. Private student loans from AlternativeStudentLoan.com would be a great alternative for these families, with competitive interest rates, a simple application process, and funds disbursed in as few as five business days after receipt of a completed application.”
“Most importantly, however, for parents who are already carrying a lot of mortgage debt, having yet another loan added to their burden might be too much. With Private Loans from Alternativestudentloan.com, the student is always the primary borrower, which is appealing to many parents,” remarked Mr. Penn.
“38% of financial experts are predicting a Federal Funds rate of 5% or higher in 2006 [4], making the Prime Rate a sizzling 8%. Add 2% – 2.5% margin on top of that plus points and closing costs, and home equity loans and lines of credit (many of which are based on the Prime Rate [5]) look much less appealing to borrowers looking to finance an education. Private student loans, by comparison, have competitive interest rates, no points, no closing costs, no collateral and no out-of-pocket fees or application fees,” said Mr. Penn.
Students, parents, and families interested in private student loans are encouraged to visit www.AlternativeStudentLoan.com or call toll- free 866-229-8900 for more information and a free application. Students who apply for the loan are strongly encouraged to have a creditworthy cosigner. For students outside the Continental US, call 617-535-7001; toll charges may apply.
Contact Christopher S. Penn at the Student Loan Network at 877-328-1565 or at cspenn@AlternativeStudentLoan.com. The Student Loan Network is a division of the Edvisors Network, a multi-national education services company offering students options for managing the entire education lifecycle, from getting into their college of choice to financing their education and beyond. The Edvisors Network is based in Quincy, Massachusetts, with offices in Quincy and London, England. Visit them on the web at http://www.EdvisorsNetwork.com for more information.
Other Student Loan Network Press Releases:
http://www.edvisorsnetwork.com/press.php
AlternativeStudentLoan.com loan products are funded by PNC Bank, N.A.
August 8th, 2010 by Bank Loan | 1 Comment | Filed in Loans
Question by tasty t: Title loan company has lien on vehicle, I just wrecked the vehicle and insurance says it is a total loss?
I just filed for chapter 7 bankruptcy and listed the title loan company on it, who gets the money from the insurance company? Also, if i decide to keep the car, do i have to give the insurance company a copy of the title?
Best answer:
Answer by § ? JLG ? § You should definitely consult your lawyer. I can most certainly tell you that you will not be getting the money. Either the bank, or trustee of the bankruptcy or however they do it now a days will get the money. If you decide to keep the car, you will have to hand in the title to get a salvage or reconstructed title.
Question by cheever_bill: Daughter attempting to get student loans. When apply online, being denied with us as co-signer, where to go?
I had to file Chapter 7 bankruptcy about 1 year ago due to a business loss. The bankruptcy has been discharged and I currently earn ~$ 156,000 /yr now. My wife earns $ 32,000/yr. My daughter is attempting to get student loans, when applying on line, it is being denied when we try to apply with us as co-signers. Any recommendations as to how to get her assistance?
Best answer:
Answer by hankerchief Try this site. It’s a peer to peer lending site. You can get a loan here but your interest rates will be high with bad credit scores. It might take some time but hopefully it will work for you.
http://www.prosper.com
Know better? Leave your own answer in the comments!
August 8th, 2010 by Bank Loan | 2 Comments | Filed in News
Question by Chelsea B: How quickly can I finance a car after my bankruptcy is discharged?
We are filing a Chapter 7 bankruptcy, and it is due to be discharged by May. How long after that can we finance a car for a decent rate?
Best answer:
Answer by Etta P You will need a substantial down payment.
Question by shawn b: What kind of home loan interest rate could I get with a bankruptcy on my record?
I have a chapter 7 bankruptcy on my record from 2003, but I have no debt and a credit score of about 700. And I have $ 20,000 for a down payment. If I got a home loan, would the bankruptcy make a huge difference in the interest rate? How big a difference?
Best answer:
Answer by Anjell Well if you haven’t been discharged from your bankruptcy usually 7-10 years you may still be able to qualify if you’ve had a good re-payment history for the last 2-3 years.
Depending on the lender they may have mercy on your current credit or make you pay for your past. Shop around and use a credible broker.
Debt Consolidation And Settlement – Cooling The Flames Of Your Own Private Financial Hell
For those perishing in the flames of overwhelming debt, debt consolidation settlement can be a form of financial salvation. There are many programs available that allege to help reduce or eliminate debt, but almost all require a payment as large as the combined payments you are already paying; the help that is offered is, in fact, no help at all. Ultimately, there are only two programs that will truly reduce your debt burden; those are Chapter 7 bankruptcy and debt consolidation settlement. Debt settlement and consolidation is an alternative to bankruptcy that will give most of the benefits, with fewer drawbacks.
Debt settlement isn’t really meant for those who can pay their bills without robbing the children’s college fund, or milk money for that matter. Rather, for those whose expenses are greater than their income, who are sliding deeper into their own personal financial hell every month, it can be the beginning of a new era of financial freedom. The advantage debt settlement has over other forms of debt management programs is really quite simple: None of the other programs reduce your principle. Debt settlement and consolidation, on the other hand, reduces your principle by about 60% on average.
Another advantage debt settlement holds is the inherent flexibility of the program. Rather than being locked into a payment you can’t afford every month, along with the stress of knowing that if a financial emergency hits, you’re basically hosed, you’ll have the peace of mind of knowing that each month, you are setting aside an amount you can afford. If you have good months, you can save more; if you have bad months, you can skip the deposit. The point is, you have up to 3 years to save enough in a separate account to negotiate a settlement of your debt with each individual creditor.
Debt settlement does have its downsides and risks. But since your monthly payment is going into a separate fund used only to settle with your creditors, and that you control, then one bad month simply means you deposit less that month. Depending on your resources, if you can make up for it in a later month, then you should do so, but if you can’t, it really isn’t a big deal. Once you have saved enough to settle your first account, typically 35% to 50% of the amount owed, you make an offer, then begin saving towards settling with the next creditor, and so on right down the line. Most creditors will take the deal, but you will almost always do better if you have hired a professional to negotiate the settlements on your behalf.
The greatest thing about debt consolidation settlement is that it is the only debt reduction plan that observes a quite simple truth: The pace of your debt elimination should be defined by your budget, rather than your budget being dominated by your debt burden. The weakness of all other programs is that the debt, rather than the budget, still comes first. Debt settlement puts you, not your creditors, in the drivers seat. While it won’t solve all of your debt problems, it will certainly go a long way in delivering you from the hell of debt into the promised land of credit freedom.
