Tuesday, December 20, 2011

Filing bankruptcy in Phoenix: Putting your student loan debt on your credit cards then filing bankruptcy?

I am a bankruptcy attorney in Arizona (Chapter 7/$995) and frequently hear clients complain that student loan debt is not dischargeable in bankruptcy. Perhaps this is part of the reason why the Occupy Wall Street protesters are so upset about student loan debt. Why are credit cards dischargeable but student loans aren't? Student loans were taken out for a legitimate serious purpose, whereas credit cards could be used to buy anything, no matter how frivolous. You can thank Congress for setting the laws up this way.

One way some have worked the system to get rid of their student loans is to pay them off using their credit cards, then file for bankruptcy. This does not seem very ethical and is risky since the bankruptcy trustee will likely see what you have done when you file for bankruptcy. For more on this subject and some advice on what to do if you have student loan debt, click here.

The Alexander Bankruptcy Law Firm provides low low cost Chapter 7 and 13 personal bankruptcies. $995 Chapter 7 or $2500 Chapter 13 bankruptcies plus court filing fee. Free consultation with a compassionate attorney who will handle your case personally. Call 24/7, available to meet with you around your schedule. 602-910-6812. Conveniently located in Central Phoenix along the Camelback corridor. AlexanderBankruptcyLawFirm.com

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