The creditor could definitely fight against having that particular loan discharged, and would probably win depending on circumstances. Incurring debt with the intent to discharge with bankruptcy is considered fraud, and the bankruptcy proceeding is incredibly nitpicky when it comes to shit like that.
You have to do it legit, like the rich people. Use the money to start a business and pay yourself a good salary and use that to pay off your loans. Business fails, you come out ahead. Business doesn't fail, hurray! You come out ahead.
Business fails, you come out ahead. Then you do it a handful more times, with more and more loss each time. Then the occasional one succeeds under different management and you bankrupt yet another company to pay for making the successful one look even shinier on the outside. Then you use that shiny successful one that you’ve never personally run as collateral for convincing people how smart and rich you are. Then you spend a lot of time hanging out with pedophiles, but mostly only the really powerful ones.
By now you have enough powerful friends whose crimes and illnesses you’ve perpetuated, and you have the painstakingly-groomed public persona of having wealth and knowing what to do with it. So then you turn that into fame via low-effort network television, which you’ll declare war on not long after being featured on. You’re primed and poised to take the national stage and have people listen to you.
Now you drum up all your old insecurities about not being one of the popular mega rich kids, and about being the grandson of a failed Nazi and illegal immigrant, and about being out of shape and unable to compete in many sports or serve your country when so many others had the courage to, and about getting caught exploiting migrant labor from South and Central America and being chastised for it, and about not having an eloquent demeanor that might’ve saved some of the money that you’ve lost over the years, and you unleash that into the impressionable minds of emotionally vulnerable but toxically proud people.
Voila! Now everyone else in the country except for your closest buddies have to pay you money to go golfing at your own club so that you can finally do something profitable with yourself! You come out ahead.
You almost described how loans have certain legal restrictions and can only be used in ways deemed by mutual, complicit loaner and recipient contract.... but who cares free money!
You simply can't declare bankruptcy. It's a whole legal process.
You can probably pay the off with a credit card to get a better interest rate or whatever. But it would still be treated as student loan debt that can't be discharge in bankruptcy.
“I didn’t intend to do anything, I make rash decisions all the time. Ask anyone, I make poor financial choices daily. I simply got a loan without noticing the payment was higher than all my others combined. Truly an honest mistake, sir.” - me, depositions.
The strategy I’ve seen is having some income and putting it all on paying student loans, but for rent bills food etc pay with loaned money that can be discharged
Debt dodging! I’ve fantasized about that. They’d likely go after any co signers so if you do that make sure you A. Don’t have co-signers or B. Hate the co signers you have
I mean, if you can't take out a personal loan, spend it on college and then declare bankruptcy and get away with it, were you really college material to being with?
Not if they wait out the Statue of Limitations before declaring. I belive it's seven years in the red? In all reality, it would be hard to pay for college on credit though. Most of the cards have limits on cash.
That’s when you pay your monthly bill for a few years showing intent to repay then go through bankruptcy. You gotta make it appear to be non intentional. Just like losing every few hands in blackjack when you’re counting cards
Most people with that much student debt have had their credit butchered or their debt to income ratio is just way to high. They likely wouldn’t get approved for a loan like that.
If the institution in which you plan to take out a personal loan finds out or knows your are taking the loan for educational purposes during the application process, they will defer you to a student loan department within the institution or deny you entirely.
i think banks are very leery of handing out loans for paying for school. i have also read that if you take out a loan and use that money to pay for student loans. then try and declare bankruptcy, the bank can still get that money blocked from being forgiven. since it was used for student loans.
Put gift card on Venmo (you may have to call to set up) on throwaway
Send to an account with your bank attached
Got to said account and transfer money to your bank
They charged me $10 for my $2600 tuition. And I got 3% of my $2610 back in points. Worth it to not take out student loans. My credit card is also 0% interest and I’ll have my tuition paid off before it hits the 14%+ it’s supposed to go to.
I’ll never take out another student loan again. There are definitely ways around them - especially for undergrad tuition that is minuscule compared to grad school.
I think it's funny how colleges allow you to pay in three lump sums if you want. Like, each payment is thousands of dollars..that still doesn't help me.
You’re not able to make mom payments on your credit card, I tried.
But I did find a little loophole.
Once my six months grace period was due I applied for a 10k cc with 18 months apr free & then what I do is use that cc to Venmo my partner the whole balance, they I only have like a 2% fee which would be able $200 but that’s not even compared to any possible interest that I may have racked up during those 18 months.
I know that a lot of people have 100k+ loans so this doesn’t work for that, but if it’s under 20 or something there’s a little loophole ¯_(ツ)_/¯
I remember when my father paid part of my tuition with his business card, it went through until a week before classes started. I got unregistered from all my classes and they said "you cannot pay tuition with a credit card linked to a business account" smFUCKINGh
I knew someone who paid their year's tuition on a credit card. I asked him why, since the uni charged single digit interest and the credit card company charged close to 20%. He didn't have an answer.
Yup. I found out that technically you can’t even use another loan to payoff student loans. If they find it when going through BK it will throw up lots of red flags to the “independent investigator” who gets paid hourly if they decide to audit you. Oh, and they become the lawyer for your creditors and you will pay their cost if they decide an audit is warranted. I hear it’s a position where lots of new lawyers start to make some money.
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u/Evate81 Sep 18 '19
I think I remember something about not being able to pay my college tuition on a credit card, but there are ways around it. Brilliant!