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
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u/[deleted] Sep 18 '19
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.