One more question, sorry.
When you say rid myself of all other debt, would that include car payments and credit card payments? And not the Sallie Mae and Direct Loan student loans, but what about private loans through Citibank for school?
Alright, what if someone obtained a personal loan and put it towards the student loans and then filed for bankruptcy? Would the courts go back to see how the new loans were dispersed or would they be eligible for discharge?
So, by consolidating the student loans into a personal loan, making the payments to the best of my ability for six+ months, and then realizing that I just cannot make ends meet, that would not be grounds for non-discharge becuase I have tried to pay it back?
Only you know what your intention is when applying for and receiving a loan. However, if a loan is taken less than 90 days before a Bankruptcy is filed, the court will presume there was no intention of paying it back - even if it is paid for the 90 days. Bankruptcy Stat. 523(a)(2).
After 90 days, the only way a creditor could prove there was no intention of paying back the loan is if the debtor admitted there was no intention.
Alright, Thank you very much for your time today.
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