Grad Student Bankruptcy?

[debtor2000]

Hello all,

I've been reading up on this site and the many links and still feel that I'm slowly creeping towards chapter 7. The credit card debts are piling up, I'm working part time but not making anything and going to school full time, my income is net negative and I'm already taking out about 31k in student loans this year. I don't own anything and have no assets and basically use my credit cards for food and living expenses while I use my meager income to pay minimums.

I was wondering if anyone here has had experience with or heard about bankruptcy in the context of being a full time grad student and what nuances that might add to the whole process.

Thanks for all the info here, I've learned quite a lot!

D

[leftyf]

I assume you are going to school for free with a stipend? I'm sure you already know student loans are not dischargeable, so a bankruptcy will be useless to get out of that debt. I would venture a guess that your student status wouldn't mean much of anything...you're just a poor person barely getting by with too much debt that needs to be relieved. Unless you're pursuing an MBA from an elite school and could possibly end up in banking or insurance, I don't think the grad student thing means much of anything. The same laws apply to you as they do to us "working stiffs."
Just my two cents.
Lefty

[Minnymouth]

As leftyf stated "student loans are not dischargable in bankruptcy..... (only in extreme "hardship" cases - which I doubt you qualify)....

And being a full time grad student has no bearing on bankruptcy at all......

The only relief filing bankruptcy for you is getting rid of cc debt that keeps mounting. But if you have no income to pay your bills with - this is a temp fix only......

Find you a couple of bankruptcy attorneys, have a consultation with them and see what options are open to you......

Keep us posted on what you decide to do.....

[SinkingFast]

BK can have an impact on your future job prospects. Depending on the career path you're attempting to follow.

And, as others have pointed out,........... Unless or until you start generating enough income to support yourself,........... BK is not really gonna help your particular situation.

[debtor2000]

Yes I'm resigned to signing my life away to my student loans which is fine. Having a small mortgage-like payment when I finally graduate (which will be many years if I go ahead and do my dissertation) seems like even more reason to not be burdened by ridiculous credit card debt that I can't pay. Also, given that I'm just going to be in school and not buying a house, car or anything even relatively major for many years it seems like a good period in which I could begin to rebuild credit. If I clear my debt soon I'll be able to pay rent and a little bit more with my income and make up the rest with student loans.
Is there any chance a CH 7 would affect my ability to get student loans next year or the year after? That's my only real concern but they seem to be in a different class given that you can't wipe them out.
But basically the situation is too many bills and no way to increase income significantly. I've worked with the numbers and there's just no give so it seems like the point is close where you can just never get ahead again. I'm looking at this long term so I'll stay on here...

[B12]

What field are you pursuing?

Just a thought, my 3 had their companies pay for all master's degrees.

Depending on your field, you might get a job in your field and get school paid for by your employer, so you don't get into more student loan debt.

Good luck.

[jennordhavn]

Yes I'm resigned to signing my life away to my student loans which is fine. Having a small mortgage-like payment when I finally graduate (which will be many years if I go ahead and do my dissertation) seems like even more reason to not be burdened by ridiculous credit card debt that I can't pay. Also, given that I'm just going to be in school and not buying a house, car or anything even relatively major for many years it seems like a good period in which I could begin to rebuild credit. If I clear my debt soon I'll be able to pay rent and a little bit more with my income and make up the rest with student loans.
Is there any chance a CH 7 would affect my ability to get student loans next year or the year after? That's my only real concern but they seem to be in a different class given that you can't wipe them out.
But basically the situation is too many bills and no way to increase income significantly. I've worked with the numbers and there's just no give so it seems like the point is close where you can just never get ahead again. I'm looking at this long term so I'll stay on here...

Filing bankruptcy won't affect your ability to get future federal loans (Stafford, etc.) because they are guaranteed and they do not check your credit. It will affect your ability to get private loans as those are credit based. You can probably still get them with a cosigner though (I got a $10k private loan with my parents co-signing about 2 1/2 yrs. after my BK).