Bankruptcy in the United States: Guess what I just found out?

[whateverman]

What? So you don't like our central planning over here? It's called indentured servitude. College is a bubble for the banks to make money off of not for learning. This was solidified with the new healthcare bill which passed ALL college tuition loan responsibilities onto the government. Just wait till this baby pops. Congrats serfs!

Besides this is America, we don't educate we indoctrinate.

I usually just ignore your posts, because you write extremely persuasively, are well-educated, and invariably bring the god-awful, negative-ass truth.

I should keep doing that. Reality depresses the shit out of me.

 

[Sam the Caveman]

I honor my debts, so bankruptcy is never an option for me. I don't care what they say is or isn't covered under bankruptcy.

 

[sandawg]

I have over $200K in student loans, so I'm not defending them. But the reason you can't get them discharged in bankruptcy is because unlike a car or a big-screen TV, a creditor can't repossess your education. Once you get it, its yours forever. And if people were able to discharge their student loans, then loans would be much harder to get. Right now, anyone can get one, because they know you can't discharge it. This is called "policy." And policy shapes our laws. When you don't understand a law, try to think about what the policy behind it could be. The key is being able to think

 

[trichrider]

the banks have been sending me credit 'offers' incessantly even though i have been unemployed for three years???wtf???, maybe i could get a student loan to go back to school, at my advanced age and ill health i could possibly pull one over on them...at least it might ease the dependance on my savings (which provide slim pickings).
bankruptcy is a legal way for corporations to void debt, or at least to renegotiate terms.

i'm of the same persuasion as Sam, but unforseen health issues put me into a hole.

oh yeah, education is the taming of the schrew alright.

 

[whateverman]

I have over $200K in student loans, so I'm not defending them. But the reason you can't get them discharged in bankruptcy is because unlike a car or a big-screen TV, a creditor can't repossess your education. Once you get it, its yours forever.

If this were the methodology, then almost all of the things people go bankrupt for in the United States- mostly expensive medical bills (over 65%)- would be ineligible for bankruptcy. "A creditor can't repossess your $2000 AMEX tab from the five star restaurant. It's yours forever." "A creditor can't repossess your kidney surgery, it's yours forever." This is not the justification attempted even by the lobbyists.

And if people were able to discharge their student loans, then loans would be much harder to get. Right now, anyone can get one, because they know you can't discharge it. This is called "policy.

Also wrong. Student loans are easy to get because we federally subsidize a majority of them anyway. Private loans are attractive for banks for obvious reasons. A few bankruptcy's would do nothing to disrupt this relationship for the same reasons it does not destroy the "personal loan" industry; banks are shady by their nature, and need the backing of daddy to do their day-to-day business. Daddy puts pressure on the banking industry to offer easy-qualifications in order to get the "hush-hush" treatment on other atrocities. That's the current government-banking relationship relative to student loans, and that's why they are easy to get it (amongst other mutually-beneficial little games, like federally-insured loans that are eligible for private interest, and various small schemes).

" And policy shapes our laws. When you don't understand a law, try to think about what the policy behind it could be. The key is being able to think

Embarrassingly ill-informed intellectual sloppiness coupled with smugness.

Not good, sandawg. Not good.

 

[DiscoBiscuit]

When the government took over student loans...I believe that's when the law changed.

 

[MIway]

Besides this is America, we don't educate we indoctrinate.

Exactly.



(Perhap with the exception of Continental Philosophy... gotta give them the nod of approval.)

 

[supermanlives]

well when you go to school you damn well better pick a career with high demand. working at mcdonalds will take you the rest of your life to pay off those loans. i am a mechanic and finding work is simple anywhere.

 

[Madrus Rose]

I honor my debts, so bankruptcy is never an option for me. I don't care what they say is or isn't covered under bankruptcy.

Here , here Sam ...most all systems are based on trust & honor but rarely the case when it comes to human beings and the hard lessons of naievte' in trusting others . How many times have i found this out in the last couple of years ? No good deed goes unpunished , is what i've found too many times than i can count . Wished there were more like you around <g

Banks were lowering the standards so low for loans and they found no shortage of citizens ready to step up & lie about their worth & incomes to get those loans . It was a complacency with the greed spread all around & the dishonesty of 100's of 1000's... no millions of people taking those loans became an immense multiplier . Of course whenever you relax regulations this is bound to happen and there's always those who make obscene fortunes also , on the default of debt .

Fast times at Ridgemont High , everyone wants the good life & they want it now . But welcome to the new age of "Austerity" & jobless recovery which is here to stay ...gone to mexico , asia , india & brazil.

Time to cry ...or get a new plan stan ?

Definitely a little of each if your an "honest" man.

 

[Bazarocka]

Its Happening Right Now Right Before Your Very Eyes

Its Happening Right Now Right Before Your Very Eyes

I think they can continue to keep the ponzi going for a lot longer than you might think. What good alternatives are there?

It is no secret that the dollar is going to die,it is a mathematical inevitability.
Nothing can stop the ultimate collapse of the dollar. Our monetary system is based on debt and in order for it to work,more debt needs to be created every year in excess of the debt AND interest accrued the year before.

The Elite don’t necessarily care if the Dollar lives or dies,they just want to control the world’s reserve currency. They would ultimately like to have a global international currency that would be far away from the pesky national politicians. So if the Dollar is doomed,how can the Elite fail forward? Create a financial crisis so incredible that desperate people will beg the Elite to make the pain stop. They did it in 1907 to set the stage for the Federal Reserve. They did it in 2008 when they held up America for $700 billion. They will do it again and use the line of stability as the main reason why we ( i mean you) should accept their new corrupt plan.

Again,,,,,,,,,,Just me rambling.

 

[Hydrosun]

It wasn't decades ago. Up until around 2005 I believe, you were able to get rid of student loans with ur chapter 7/11, now it is 99% impossible.




nah. 99% of the world needs to take out a loan (mortgage) to buy a house, and a shitload of students have to take out loans to get an education. Tho I'll admit if i could re-do my child hood there's no way I'd spend 200k on a college again, regardless of its reputation, unless it directly resulted in a huge ROI which in most cases it doesn't these days.

I'm going to have to disagree with your post. I began college in the 1990's and I believe that student loan debt was non dischargeable then as well.

I'm not sure when if ever student loan debt was dischargeable.

The reason student loan debt is FOREVER is because the federal government guarantees student loans. If they have to come in and pay off the lender then you now owe Uncle Sam. The Godfather always gets paid you can't discharge income tax obligations either.

 

[Bazarocka]

BTW

BTW

I believe that the collapse of the dollar will be blamed not on our (your) corrupt and doomed monetary system that the Elite are in sole control of, THEY will blame it on China, like their already doing.

 

[Hydrosun]

Question...were student loans "predatory" too? Some would say they were... But then, I don't think so...YOU signed on the dotted line. And it's NOT the governments job to protect you from EVERY possible thing. Take some fucking responsibility! I'm SO tired of poor/stupid people complaining about EVERY fucking thing!

I agree with you that the government shouldn't protect people from themselves but more importantly the government should not protect business from its customers.

If the University of Phoenix, Devry, ITT Tech, The Truck Drivers Institute, or USC want to allow their customers to finance tuition that is fine BUT it should be NONE of my concern to pay off the loan if the dead beat skips. What is wrong with the business being responsible for making a bad lending decision? Didn't those fuck tards sign on the dotted line too?

 

[Hammerhead]

That is very true. I dont want the gov involved with anything they just make things worse. Bailing out all these corps was a huge mistake, I say let them fail and be done with them.

Did you all notice the banks all got bailed out but the home owners got left holding the empty bag.



if you are not capable of paying that government bill you can get the balance drastically reduces. Im no expert but you must show you dont have means to pay the 100,000 so they will take 25,000. This is only for unpaid taxes.


If anyone has noticed that all of the people running for top dog said that they would repeal the Medical insurance law that Obama did.

What a huge waste of all resources involved with this. Our Gov has there head deeply implanted up there ass.

None of those people are capable of running a country. Its just going to keep getting worse until a major crises hits our country. What got us out of the first depression it was WAR.

 

[headiez247]

I'm going to have to disagree with your post. I began college in the 1990's and I believe that student loan debt was non dischargeable then as well.

2005

The Bankruptcy Abuse Prevention and Consumer Protection Act was enacted in 2005 to include private student loans as one of the 10 debts that can't be forgiven.

Source: http://www.npr.org/templates/story/story.php?storyId=9803213

 

[Hydrosun]

2005 may have been a change in BK law with means testing and income thresholds and the like but government backed student loans were NOT discharagable in 1990 or 2000 in fact it looks like 1976 was the start.

"Student loans were dischargeable in bankruptcy prior to 1976. With the introduction of the US Bankruptcy Code (11 USC 101 et seq) in 1978, the ability to discharge education loans was limited. Subsequent changes in the law have further narrowed the dischargeability of education debt."

http://www.finaid.org/questions/bankruptcyexception.phtml

2005 made no change to the situation because student loans were already NON dischargeable.

 

[headiez247]

2005 may have been a change in BK law with means testing and income thresholds and the like but government backed student loans were NOT discharagable in 1990 or 2000 in fact it looks like 1976 was the start.

"Student loans were dischargeable in bankruptcy prior to 1976. With the introduction of the US Bankruptcy Code (11 USC 101 et seq) in 1978, the ability to discharge education loans was limited. Subsequent changes in the law have further narrowed the dischargeability of education debt."

http://www.finaid.org/questions/bankruptcyexception.phtml

2005 made no change to the situation because student loans were already NON dischargeable.

Prior to 2005 it was possible. It wasn't "easy" but it was def. doable. I have 2 friends who made it happen. Lots of paperwork, lying, good lawyers etc. This is why the part i bolded is important they say "limited" not impossible.

Post 2005, with the new law, it is essentially impossible unless you have cancer and are going to die in 2 years or something.

my friends were lucky, one of them got over 150k dismissed. and to top it off hes doing well financially now

 

[sandawg]

Embarrassingly ill-informed intellectual sloppiness coupled with smugness.

Not good, sandawg. Not good.

I don't know where YOU went to law school, but where I went to law school, they taught us POLICY. Not policy that you can find in five minutes googling the history of student loans on wikipedia. I'm talking policy that resides between the statutory lines.

I wasn't being smug when I said you need to think to uncover policy. You DO need to think, beyond the obvious. I'm not going to fucking sit here and hold your hand while I massage your brain through mental exercises. If you are going to play the conspiracy theory card rather than rationalize some concrete policy justifications for disallowing discharge of student loans in bankruptcy, then I'm probably just blowing hot air back at a blowhard.

Do you know how many lawyers would discharge their student loans in bankruptcy if they could? Don't be a fucking idiot.

 

[sandawg]

And let me add this to your retort about not being able to get back medical operations and such. . . .

There is definitely a difference in policy between discharge of student loan debt and medical services. There is no ethical obligation for banks to provide student loans. There is an ethical obligation for doctors, however. So while we want to encourage banks to loan to students, there is no such need to encourage doctors to provide emergency services since they are already ethically obligated.

 

[Captain Ginyu]

That's nothing new, been around for years. And just like taxes, student loans won't wash in a CH 7 Bankruptcy. My father had to pay a settlement, or his soc security was going to get garnished, because my sister defaulted on a student loan, he co-signed for back in 1989.