Can We Repay Credit Cards to your Student Loans And Get Bankrupt?

Can We Repay Credit Cards to your Student Loans And Get Bankrupt?

Bankruptcy can wipe away some kinds of financial obligation, although not them all. As an example, listed here forms of financial obligation are nondischargeable:

  • Alimony (spousal help)
  • Son or daughter support
  • Debts from individual damage sustained while driving drunk (when you yourself have this sort of financial obligation, please provide me personally your target and so I can poop on the face)
  • Loans that have been acquired through fraudulence (poop-rule pertains here too)

Ideally you don’t have some of these forms of debt at this time. Unfortuitously figuratively speaking are often nondischargeable also. The only path you may get surrounding this guideline is whenever you can show your debt is causing you undue hardship – while the recommendations for appearing that are pretty damn strict.

“But wait – I’m able to simply spend my student loans off with charge cards, then register Chapter 7 to wipe away the credit debt which is dischargeable! ” – smart-ass grad

Therefore now we started to the “hack”.

We have heard a couple of people that are different aloud why more students don’t try this. It the first time, my rationalist training kicked in and a simple thought bubbled to the forefront of my mind when I heard about:

It has turned into quite a helpful habit to take – that will be most likely why it is 1st product in the Rationality Checklist. Continue reading “Can We Repay Credit Cards to your Student Loans And Get Bankrupt?”