Credit Card Debt Bankruptcy

I currently owe $45,000 in student loans and I am having a hard time paying them off. The loans are private (sallie mae) and I am not elligible for consolidating them via federal loans since I am not a US citizen. I was not able to get a visa so I had to leave the US. I live in Europe now.

I understand that declaring bankruptcy would not cancel out the student loans, but I have read that bankruptcy could cancel out credit card debt. I have a good credit score (790), so given some time, with an even higher credit score, I may be able to transfer my loans to a few credit cards.

What are the laws regarding credit card debt and bankruptcy? What difference does it make that I am not a US citizen and do not live in the US?

I would strongly advise you not to go that way. You will carry that mark against you for life. Talk to your student loan creditors and tell them that you are doing it really tough. Most will understand and help you come to a better arrangement that's suitable to you both. I have been in a similar position to you and I worked out a solution with my creditors. Maybe you could talk to a financial adviser who could show you various options. Good Luck.

2007-04-16 09:04:53 by migueljuan

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I have been told recently that you can no longer file for bankruptcy on credit card debt. I am curious if this is true and if it is; what is someone $40,000 in credit card debt trying to get an education and support a family supposed to do? I have one credit card that refuses to work with credit agencies. What do I do now? I know it is my debt, but I was a young single mother and now I am in way over my head; barely living from paycheck to paycheck. What can I do to survive while I try to finish college and support my family?

You know what I found out about credit card companies? They are so full of bluff it's not even funny. One day, I got so sick and tired of trying to work with the card company on a feasible plan to pay off my debt that when they had called me for the third time in one day and asked "when are you going to be able to make a payment" I just said "I will send you a payment by check, today". I did, I sent them ten dollars.

They complained, they harangued, they argued and threatened, but they cashed it and every month I sent them a check for ten bucks until I was better able to pay. Oh yeah, don't forget to tell them to close the account, if it is not already done. That way, there is a set amount you will owe and not one that incurs interest.

Don't argue with them or let them threaten you, just say "This is all I can pay right now, and when I can pay more, I will ... do what you have to do" and hang up. Unless you owe hundreds of thousands or something lol, they won't even bother taking you to court and here's why: if you've been making payments that shows a willingness to pay the debt, so the court won't let them garnish your wages (in some states they can't do that anyway). It doesn't matter what the amount is to the court. :)

But pay the thing off when you can, don't be a slacker, okay? That's not cool.

2006-08-10 16:02:38 by gracefullady77

Price: $30.00 $19.80

I have about $90000 credit card (non secured) debt. I am employed making about $47000 (gross) per year and supporting a family of 4. I am very scared. I want to some how start a new life without the fear and stress. I want to make sure that filing bankruptcy is the best way to go and I won't end up in court facing some serious consequences.

Hi, I emailed you, hope you don't mind. I can only suggest how I can help you.

2008-09-07 13:09:05 by I am in hell

Price: $12.00 $12.00

I have a friend in FL that is filing bankruptcy. I thought they passes a law a few years ago that stated you could not include credit card debt in bk. Is that true? They are telling me that you can include credit card debt.

All consumer debts can be included in a bankruptcy. It's just a lot harder to file chapter 7 now.

First you have to go through 6-months of credit counseling and then take whats called a means test to determine weather you file chapter 13 or 7.

If you make over the average annual income for your State, you are forced into a chapter 13.

2007-05-01 08:31:30 by beehappy01

Can an individual eliminate credit card debt by declaring bankruptcy? I didn't think you could wipe it out, just get the bill collectors off your back. But, someone told me that it depends on which chapter of bankruptcy you use. The right one WILL eliminate credit card debt. I know someone who has $80,000 in credit card debt and they are trying to do that to get rid of that debt! Is it really possible? Are there any restrictions in doing this. Can you ever get a credit card again if you do it?
If you file bankruptcy to eliminate all debt, do you have to give up ALL of your possessions? Will you have anything left?
This is for a friend of mine (really). They don't own a home. They have 2 cars and some furniture and A 401k plan. Between the two of them they make about $40,000 a year. I don't see how debt consolidation will help them How could they EVER pay off $80,000!?! They had a house but they used up all the equity in it over the years and sold it recently and broke even on the deal, ending up with NOTHING! What a mess! I just didn't think they could wipe out their credit card debt! And, it really isn't fair to the rest of us that pay our bills!

There are a number of factors involved.

A chapter 13 is where you have to pay back some of the debt. How much depends on what your current disposable income is and how much your debts total. There is a fairly complicate formula involved. But this will stop them from filing judgments, garnishments or liens. It freezes interest and late fees. And it protect your property if you own a home or car.

A chapter 7 is called "liquidation" for a reason. You may have to give up most of your property. Therefore, if you have a lot of property along with that 80k in credit card debts, you may have trouble keeping it all.

Also, you must pass a "means test". This was put into place to prevent someone who has a very good job from filing BK and dodging their debts. If you earn (generally) over $45k a year you will not qualify for Chapter 7. Again..there is a complicated formula to figure this out.

There are a lot of bankruptcy lawyers who have a free consultation. If you think it's necessary talk your situation over with them.

2007-08-10 16:49:17 by ol_skater_boy