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If you default on loan just months after getting the loan

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    If you default on loan just months after getting the loan

    I had to take out a $25,000 LendingClub loan for dental work in December. I am no longer able to make min payments on CCs. Still paying LendingClub $450 a month. Very hard to do, but can’t file CH 7 for another year and a half. If I end up defaulting on this within a year of taking this loan, is that considered “non-dischargable? Or fraud?

    After taking out the loan I listed my condo thinking that way I could pay, but no luck selling yet.

    #2
    Defaulting on a loan is not considered to be non-dischargeable. To be non-dischargeable by operation of law, it would need to meet one of the criteria in 11 USC 523... and in most cases, the creditor would still need to file a complaint to determine dischargeability to have it made non-dischargeable. While a $25K loan is sizeable, I don't see any issues where the debtor attempted to make payments but later defaulted on the loan.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      Thanks Justbroke,

      I just found out I owe $4000 to the IRS from the money I took out of my Inherited IRA for my condo down payment last year. As I am drowning from credit cards as well on top of the LendingClub loan. As I said, I am current right now but not sure how long...

      Have you heard or anyone in this forum had a creditor win an AP on charges outside of the 6 month look back?

      ‘Sorry I so anxious and ask a lot of what if questions. Is there a way to look up recent AP cases in Florida?

      Comment


        #4
        APs are very rare. It's usually only for fraud when the creditor can prove this fraud based on admissible evidence. I would not look up recent "Adversary Proceedings" (APs) in Florida or any other State.

        You are overthinking this!
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog


        I am not an attorney. Any advice provided is not legal advice.

        Comment

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