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What stops the student from declaring bankruptcy at age 22 with no assets and a completed education? Their respect for banks? The 7 years of credit score pain?

by dahdum 7y ago

AlchemistCamp 7y ago
The Bush 43 bankruptcy reform act made student loans impossible to escape via bankruptcy. As Peter Thiel said in his recent speech: > "There is the fraud of university education. Student loan debt is not dischargable in bankruptcy. The government can garnish your Social Security payments when you’re 65 to pay off your student loans." source: https://medium.com/@bonniekavoussi/notes-from-peter-thiels-speech-at-the-national-conservatism-conference-on-july-14-2019-6a51b26b202 https://medium.com/@bonniekavoussi/notes-from-peter-thiels-s...
- howard941 7y ago
  I've counseled many parents who'd guaranteed their kid's loans only to have their own SS garnished when the kid couldn't pay. It's a shitty system.
howard941 7y ago
> What stops the student from declaring bankruptcy at age 22 with no assets and a completed education? With only those facts in hand I would tell my client (speaking as a debtor's BR atty in my former life) to expect a fight against a motion to dismiss for filing in bad faith. > The 7 years of credit score pain? Bankruptcy filings are reported for 10 years, discharged or not. Derogatory info related to certain tax debts also bypass the 7 year limit. Other derogatory info should go away [0] after 7 years. The only good news for debtors is the effect ages rapidly in an inverse curvelinear (sp) fashion from what I can gather guessing at the CRA's proprietary scoring algorithms. [0] It never ceased to surprise me how much stale >7 year old debt was still reported and thanks to the wonderful provisions of the FCRA the furnishers and CRAs get a free pass until the consumer takes affirmative, precise, deliberate steps to get it out of the four CRAs' systems

What stops the student from declaring bankruptcy at age 22 with no assets and a completed education? Their respect for banks? The 7 years of credit score pain?

by dahdum 7y ago

What stops the student from declaring bankruptcy at age 22 with no assets and a completed education? Their respect for banks? The 7 years of credit score pain?

AlchemistCamp 7y ago

The Bush 43 bankruptcy reform act made student loans impossible to escape via bankruptcy. As Peter Thiel said in his recent speech: > "There is the fraud of university education. Student loan debt is not dischargable in bankruptcy. The government can garnish your Social Security payments when you’re 65 to pay off your student loans." source: https://medium.com/@bonniekavoussi/notes-from-peter-thiels-speech-at-the-national-conservatism-conference-on-july-14-2019-6a51b26b202 https://medium.com/@bonniekavoussi/notes-from-peter-thiels-s...

howard941 7y ago
I've counseled many parents who'd guaranteed their kid's loans only to have their own SS garnished when the kid couldn't pay. It's a shitty system.

howard941 7y ago

> What stops the student from declaring bankruptcy at age 22 with no assets and a completed education? With only those facts in hand I would tell my client (speaking as a debtor's BR atty in my former life) to expect a fight against a motion to dismiss for filing in bad faith. > The 7 years of credit score pain? Bankruptcy filings are reported for 10 years, discharged or not. Derogatory info related to certain tax debts also bypass the 7 year limit. Other derogatory info should go away [0] after 7 years. The only good news for debtors is the effect ages rapidly in an inverse curvelinear (sp) fashion from what I can gather guessing at the CRA's proprietary scoring algorithms. [0] It never ceased to surprise me how much stale >7 year old debt was still reported and thanks to the wonderful provisions of the FCRA the furnishers and CRAs get a free pass until the consumer takes affirmative, precise, deliberate steps to get it out of the four CRAs' systems