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should I file bankruptcy, or will it do more harm then good?

I owe on a 10,000 student loan. My grandfather signed as a cosigner, and he has been having to pay the monthly payments since I cannot afford to, but it is hurting him. I also owe about 7,000 in other bills. So should I file for bankruptcy, or will it hurt my credit worse? How does it work, and how will it help?

Answer Question

Asked by Anonymous at 11:02 AM on Aug. 16, 2009 in Money & Work

Answers (12)
  • you can try; we tried twice and were told that we earned too much money.

    Answer by Anonymous at 11:03 AM on Aug. 16, 2009

  • Sorry, I meant to say that we were told twice that we did not earn enough money to file.

    Answer by Anonymous at 11:04 AM on Aug. 16, 2009

  • Bankruptcy will not erase student loans. But, you can try it for the 7,000.00. Remember though, you can only file every 8 years or something to that effect. It does not make anything worse, because if you feel that is your only option, what could be worse?? Seriously? I filed, I was still able to keep my house, my car and get a credit card (which I did not do) about three months later. Trust me, it does not ruin your life. The only way it could be bad is if something worse would happen to you, such as a large hospital bill, or illness, within that 8 year span.

    Answer by Anonymous at 11:09 AM on Aug. 16, 2009

  • Ive never heard of not earning enough money to file...thats interesting. What you will do is provide documentation of the debt you have. You do have to disclose your income and prove that you can afford to pay for your home and anything you want to keep such as cars, houses, ect. If you cant afford to pay for it, they will make you bankrupt it and you lose it, such as your car. The laws are a bit different than when we did this. Its been about 7 yrs ago. It didnt hurt our credit no more than it was already. Late payments and default are as bad on your credit as bankruptcy. We had filed and then bought a house 2 yrs later, so its not horrible.

    Answer by momofsaee at 11:10 AM on Aug. 16, 2009

  • momofsaee.
    Bush changed the law of bankruptcy, it's silly. the people who needs to go on it but cant afford it are screwed now ugh. I hope obama changes it back.
    and as for the OP.. maybe you can ask the bank how it works, I think some banks are different than others

    Answer by kittenripmaygo at 11:13 AM on Aug. 16, 2009

  • You can't file for student loans and 7 g's is not a lot to file on either.

    Answer by Anonymous at 11:18 AM on Aug. 16, 2009

  • As everyone said above, student loans (private & federal) are not erased during bankruptcy.

    Answer by jennifercalling at 11:35 AM on Aug. 16, 2009

  • You can't bankrupt school loans. You made the debt, start paying it off! Get Dave Ramsey's Total Money Makeover.

    Answer by feesharose at 12:03 PM on Aug. 16, 2009

  • Apply with your student loan company for a forebearance, explaining your financial circumstances. Forebearance means that there is a halt in the payments, but interest will accrue. Then contact your credit card companies and explain that you simply cannot pay-- is there a compromise? They may be willing to lower your monthly payments for a finite period of time to allow you to catch up.

    Depending on the state you live in, bankruptcy may prevent you from obtaining other loans for a while. That can be very bad if there's an emergency.

    Good luck!!

    Answer by Busimommi at 1:13 PM on Aug. 16, 2009

  • I called my credit card company and was amazed at what they can do to help you get caught up. Since they want their money, it is in their best interest as well.

    Answer by Anonymous at 5:04 PM on Aug. 16, 2009

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