My brother has over 97,000 dollars in personal student loans, plus 60,000 in credit card debt, all accrued during college. All his debt was due to him paying for studnt supplies, tuition ect. He now has a good paying job, however his salary does not come close to covering his loans and credit card payments. He has mentioned filing bankruptcy as he can%26#039;t pay rent, utilities ect and tjhe other payments. I told him to contact a credit counseling group, and when he did they told him to get a second job, which his work schedule will not allow for. I don%26#039;t want to see him make a mistake, any tips?
My brother is looking into filing bankruptcy, is that bad?
Bankrupty is not necessarily a bad thing. It gives you a fresh start. Also, millions of people file for bankruptcy every year. It%26#039;s not the end of the world.
I filed for bankruptcy about a year ago and I%26#039;m doing fine.
He will not be able to discharge any of the student loans in bankrutpcy. The student loans will have to be repaid.
He may be able to discharge the $60,000 in credit card debt in bankruptcy. This is if he qualifies for a Chapter 7 bankruptcy filing. (If your brother earns over a certain amount, he will not be allowed to file for Chapter 7 and will have to file for Chapter 13.)
Bankruptcy is complicated. Your brother should speak with a bankruptcy attorney and explore his options.
Good luck.
My brother is looking into filing bankruptcy, is that bad?
I got good and bad news for you.
1. bad news is that you%26#039;re brother is one of the nearly 2 million people in America who declare bankruptcy per year.
2. good news is that your brother can get out of debt if he is willing to learn why he got into debt in first place.
3. read this article why middle class is being eliminated: http://www.freetomanifest.com/middle_cla...
My brother is looking into filing bankruptcy, is that bad?
If he is worth anything at his job he should be able to talk to his boss privately about his financial problem so he can take a couple of hours off. Also, he should call and schedule an appointment with a bankruptcy lawyer to see if its right for him. Don%26#039;t worry about him making anymore mistakes! Its not like his credit can get any worse, lol. Seriously though, stay on his *** about contacting a lawyer. Ask him everyday and every hour if you have to. If he doesn%26#039;t do it then he is not concerned with helping himself and in that case neither should you be. Good Luck to you and your Brother!
-Albert
My brother is looking into filing bankruptcy, is that bad?
There has to be something else he can do. He should try other credit counseling agencies out there. He can talk to a bankruptcy attorney and he/she should be able to help him out with more options. Instead of filing for bankruptcy he can always do the other one where they have to allow him more time to pay. He can try calling his debtors and see if he can get his int rest rates lowered. He just needs to be honest with them and more than likely they will be willing to help him out especially if he threatens bankruptcy.
My brother is looking into filing bankruptcy, is that bad?
This sounds like a case for a Chapter 13 bankruptcy. The creditors can get paid off, but not at the speed they would like. It is worth talking to an attorney about this. Bankruptcy is a bad thing, and to be avoided if at all possible, but this is a case where it may be unavoidable.
My brother is looking into filing bankruptcy, is that bad?
i suggest he not file bankruptcy as he is young and this will destroy his credit. he should contact all people he owes and make arrangements himself. do not wait for them to call him as he will get more cooperation if he calls.usually these people will cooperate and set up a payment plan with reduced interest rates. he can get them down to about 2%. get names, and numbers of who he talks to and keep his promises. he should not hire a attorney or outside agencys.he can do it himself and get his spending under control.at most he could talk to a referred accountant.
My brother is looking into filing bankruptcy, is that bad?
First thing, you cannot file bankruptcy on studentt loans. You will have to pay those back no matter what. He should contact the studen loan company and see if he could consolidate to a lower interest rate, or get his payments reduced. They will work with you, but you have to call. Secondly, bankruptcy is awful. Trust me, my husband and I filed Chapter 7 in 2003 and our credit scores are just now back at 670/675. After we filed, they dropped to around 523. Plus even when your scores come back up, the bankruptcy is still on your credit report for up to ten years (mostly seven) and it follows you ever where. Is there any way your brother can contact the credit card companies and get his interest rate lowered, or combine all of his cards into one lower interest rate loan. Is there maybe someone that could co sign with him (like a parent of sibling) that has great credit so he could get a low interest loan that would have the same monthly payments for the credit card debt. I would do all of that before I would even mention the %26quot;B%26quot; word. I understand its very frustrating and nerve wracking, but he will be much better off if he can avoid it. Have him contact the creditors before he gets behind on payments, they are willing to work with you if you just call. Good Luck.
My brother is looking into filing bankruptcy, is that bad?
You can%26#039;t bankrupt student loans. He can get a hardship deferral. So we%26#039;re really talking about the 60,000 dollars. He needs the hardship referral and a written budget. Cut lifestyle, sell stuff.
My brother is looking into filing bankruptcy, is that bad?
You can not file an student loans, you must pay them off.Bankruptcy is an option to so seek a lawyers advice. Chapter 13 could work but it takes time to pay everything off years usually. Be prepared to live on a tight budget.
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